The parent company of Talen Energy’s Susquehanna’s nuclear power plant in Salem Township has been acquired by Riverstone Holdings LLC, the company announced Friday.
PPL Corporation, the former owner of the power plant, spun off their generating assets last year, forming Talen Energy. During the spinoff, Riverstone’s employees owned near 35 percent of Talen’s stock.
According to a press release announcing the merger, the agreement between Talen and Riverstone stated that any stock not owned by Riverstone will be acquired for $14 per share in cash, and Riverstone will buy the remaining stake in Talen Energy at $1.8 billion. The financing for the acquisition is a combination of Riverstone’s cash on hand, the existing stock ownership of Talen Energy by Riverstone and a $250 million loan. The value of the transaction is estimated at $5.2 billion.
Talen owns 23 plants spanning eight states, with the majority of them natural gas. According to a Todd L. Martin, manager of media relations for Talen Energy, the Salem Township plant is the only nuclear power plant for Talen Energy.
Martin also said there will be no “immediate implications” for employees.
“(The acquisition) will take a significant amount of time,” Martin said, noting the deal still needs to be regulatory and shareholder approved.
As of the market’s close Thursday, Talen Energy stock was at $11.94; on Friday, right after the stock market opened and the announcement of the acquisition was made, Talen Energy stocks went to $13.90 and held steady throughout the day, ending at $13.99 at the 4 p.m. closing bell.
Riverstone was founded in 2000 and has offices in New York, London, Houston and Mexico City. Its website states the company has close to $30 billion in more than 120 investments across five continents.
The acquisition is expected to be completed by the end of 2016.