AES buys DPL for $3.5 billion in cash

Ohio-based DPL Inc. entered into a definitive merger agreement with AES Corp. AES will acquire DPL in a transaction with an enterprise value of $4.7 billion, including a total equity value of $3.5 billion.

Under terms of the agreement, Virginia-based AES will acquire all  outstanding shares of DPL for approximately $3.5 billion in cash, or $30 a share. That represents an 8.7 percent premium over DPL’s closing share price on April 19, 2011. DPL's operating utility is Dayton Power & Light.

The Board of Directors of DPL and AES unanimously approved the agreement. The transaction is expected to close in the next six to nine months, subject to approval by DPL’s shareholders and receipt of regulatory approvals, including those from the Federal Energy Regulatory Commission, the Public Utilities Commission of Ohio and the antitrust review under Hart-Scott-Rodino Act.

“We are concentrating our growth efforts in a few key markets, including the U.S. utility sector,” said Paul Hanrahan, president and CEO of AES. “The DPL acquisition is expected to be value and earnings accretive and to build on our nearby utility business at Indianapolis Power & Light Co.”

DPL’s financial advisor is UBS Investment Bank and its legal advisor is Cadwalader, Wickersham & Taft LLP. AES’ financial advisor is Bank of America Merrill Lynch and its legal advisor is Skadden, Arps, Slate, Meagher & Flom LLP.

Read more news and features on the business of power generation.

Did You Like this Article? Get All the Energy Industry News Delivered to Your Inbox

Subscribe to an email newsletter today at no cost and receive the latest news and information.

 Subscribe Now

Whitepapers

Logistics Risk Management in the Transformer Industry

Transformers often are shipped thousands of miles, involving multiple handoffs,and more than a do...

Secrets of Barco UniSee Mount Revealed

Last year Barco introduced UniSee, a revolutionary large-scale visualization platform designed to...

The Time is Right for Optimum Reliability: Capital-Intensive Industries and Asset Performance Management

Imagine a plant that is no longer at risk of a random shutdown. Imagine not worrying about losing...

Going Digital: The New Normal in Oil & Gas

In this whitepaper you will learn how Keystone Engineering, ONGC, and Saipem are using software t...