Energy Capital-led Consortium To Buy Calpine For $5.6 Bln - Quick Facts

(RTTNews) - Calpine Corp. (CPN) announced a definitive agreement under which Energy Capital Partners along with a consortium of investors led by Access Industries and Canada Pension Plan Investment Board will acquire Calpine for $15.25 per share in cash, or $5.6 billion. The transaction was unanimously approved by Calpine's Board. The agreement includes a 45-day "go-shop" period.

Calpine will maintain its corporate headquarters in Houston, Texas with the current management team expected to remain in place. The proposed transaction is subject to approval by stockholders representing a majority of outstanding shares of common stock of Calpine. The parties currently expect the transaction to close in the first quarter of 2018.

Frank Cassidy, Chairman of Calpine's Board, said: "This transaction is the result of an exhaustive review of strategic alternatives undertaken by our Board, with the assistance of outside advisors, to maximize shareholder value and unlock the company's intrinsic value, while eliminating execution risk. We are confident that this is the best outcome of that review and look forward to shareholder approval."