By Dow Jones Business News,
June 10, 2014, 12:38:00 AM EDT
PPL Corp. ( PPL ) and Riverstone Holdings have agreed to combine their power-generation businesses into a new, stand-
alone listed power producer, PPL Corp. said late Monday.
The new company will be called Talen Energy Corp. It will become the third-largest investor-owned, independent power
producer in the U.S. based on megawatts of generating capacity, PPL Corp. said in a statement.
PPL Corp. will spin off PPL Energy Supply--the company of PPL Generation and PPL EnergyPlus--to PPL Corp.
shareholders. That will then be combined with Riverstone's generation business to form Talen Energy. Talen is expected
to be listed on the New York Stock Exchange, PPL said in the statement.
PPL Corp. shareholders will own 65% of Talen and Riverstone 35%. PPL Corp. will have no ownership of Talen, the
statement said. PPL Corp. shareholders will receive Talen shares on a pro-rata basis, it said.
"Talen Energy will be a very significant player in the U.S. competitive generation market," PPL Corp. Chairman,
President and Chief Executive Officer William H. Spence said. "Talen Energy will have significant scale, a very
competitive cost structure and the financial agility to pursue growth opportunities."
PPL's Corp.'s Chief Financial Officer Paul A. Farr will become Talen's president and CEO.
Following the deal PPL Corp. will concentrate on its utilities in the U.K. and Kentucky and Pennsylvania in the U.S.
It has more than 10 million customers.
Talen Energy will combine 5,325 megawatts of capacity owned and operated by Riverstone in Maryland, New Jersey, Texas
and Massachusetts with 9,995 megawatts of capacity of PPL Generation in Pennsylvania and Montana.
The transaction is subject to approval by the Nuclear Regulatory Commission, the Federal Energy Regulatory Commission
The deal is expected to close in nine to 12 months, the PPL statement said.
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