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.
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