Talen Energy Agrees To Be Bought By Riverstone In $5.2 Bln Deal - Quick Facts

(RTTNews) - Talen Energy Corp. (TLN), a competitive energy and power generation company, announced Friday that it has entered into a definitive merger agreement to be acquired by Riverstone Holdings LLC, a private investment firm, for $14 per share in cash. The transaction has a total enterprise value of approximately $5.2 billion.

Under the merger deal terms, all shares of Talen Energy not currently owned by Riverstone affiliated entities will be acquired in the transaction.

Riverstone affiliates currently own approximately 35 percent of the outstanding shares of Talen Energy, which were issued in the June 2015 transaction.

The parties currently expect the transaction to be completed by the end of 2016.

The purchase price represents a 56 percent premium to the closing price of $9.00 per share on March 31, 2016, the last trading day before public reports of a potential sale of Talen Energy, and a 101 percent premium to the 60-day volume-weighted average price of $6.95 per share through March 31.

Stuart Graham, Chairman of Talen Energy's Board of Directors, said, "The disinterested directors of the Board, not including the two Riverstone directors, with the assistance of our financial and legal advisors, carefully analyzed Riverstone's offer, and after extensive negotiation and thorough consideration, concluded that the agreement we are announcing today is in the best interests of our stockholders."

The agreement provides for a "go-shop" period, during which Talen Energy may actively solicit, receive, evaluate and potentially enter into negotiations with parties that offer alternative proposals. The go-shop period is 40 days.

In pre-market activity, Talen Energy shares were trading at $14.08, up 17.92%.