Under terms of the deal, GenOn Energy Inc. shareholders will get 0.1216 of a NRG Energy Inc. share for each of their GenOn shares. Based on NRG's Friday closing stock price, the offer equates to about $2.20 per GenOn share. That represents about an 18 percent premium over Houston-based GenOn's Friday closing stock price.
NRG, based in Princeton, N.J., sells power on the wholesale market and to retail customers in states that have deregulated their electric power industry. It said the acquisition will allow it to cut costs, while boosting efficiency and cash flow.
"This combination ushers in a new era of scale, scope, and market and fuel diversification in the competitive power industry," NRG President and CEO David Crane said in a statement.
NRG expects the higher profits and lower costs stemming from the deal to increase its free cash flow by about $300 million per year.
NRG has been hurt by a long and steep decline in wholesale power prices. Prices have fallen because electricity demand has been soft in the sluggish economy and because the price of natural gas, which is used by many utilities to run generators, has fallen to its lowest level in years. Also, the mild winter across much of the country reduced demand for heating across the country and dented the profits of electric
companies.In May NRG posted a first-quarter loss of $209 million, or 92 cents per share. GenOn, which was formed through the combination of Mirant and RRI Energy in 2010, lost $32 million, or 4 cents per share in its first quarter.
NRG operates power plants that run on natural gas, coal, oil, nuclear, solar and wind energy. It is one of the biggest power companies in the country with 25,000 megawatts of generating capacity, with two million customers in 16 states.
GenOn has generating capacity of almost 23,000 megawatts, with facilities in a dozen states. It uses coal, natural gas and oil to generate electricity.
Once the deal closes NRG shareholders will own 71 percent of the combined company and GenOn shareholders will own 29 percent. Four members of GenOn's board will join NRG's board, with GenOn Chairman and CEO Edward Muller becoming the board's vice chairman.
The deal is subject to approval by the shareholders of both companies, as well as federal and state regulators. It's expected to close by the first quarter of next year, the companies said.
Also on Sunday, NRG said that it will pay its first common stock dividend. A dividend of 9 cents per share will be paid on Aug. 15 to shareholders of record as of Aug. 1.
Corrie on Liz! Back to her best after two years of hell - Liz Dawn enjoys day out shopping - Daily Mirror
SHE was forced to quit Coronation Street when an incurable lung disease left her unable to carry on playing battleaxe Vera Duckworth.
But as our pictures reveal, Liz Dawn is bearing up well as she enjoys her new life away from the Cobbles.
The screen legend grinned broadly and shared a joke with passers-by during a day out shopping with husband Don.
Friends say Liz, 72, is happier than ever with her new lifestyle since quitting Corrie.
A pal said: “Despite the problems with her health, Liz is happier than she has been for a long time. She and Don still get along like a house on fire after 52 years of marriage.”
Liz made her last appearance in Corrie two years ago as a ghost when her on-screen husband Jack Duckworth died in his armchair.
Fans of the ITV1 soap will be delighted to see Liz looking so well days after she spoke movingly about her battle with ill health.
She said: “My breathing was so bad I thought I was dying. I’d smoked for many years and I’d always had a bit of a cough and a splutter but I was getting worse and worse and struggling to breathe.”
Liz, who starred in Corrie for 34 years, was pictured shopping in York last week.
An onlooker said: “It was great to see her laughing and smiling and looking so well. She stopped to sign autographs and have her picture taken with people. She was in really good spirits.
“Her husband was doting on her and looking after her. They had a cuppa together and just enjoyed watching the world go by.”
Liz has emphysema and chronic obstructive pulmonary disease. Her lungs are down to a third of their capacity and she has to use a wheelchair because she can’t walk far.
Olympics bring longer Sunday shopping hours to UK - FOXSports.com
LONDON (AP)
The Olympics are bringing longer Sunday shopping hours to England.
Britain's government says restrictions on Sunday trading hours will be lifted during the games to maximize the economic benefit that the Olympics will bring to the country.
Currently, British law stipulates that shops larger than 280 square meters (3,000 square feet) can only open for six hours between 10 a.m. and 6 p.m. on Sundays. But Treasury chief George Osborne said many of the biggest Olympic events will be on a Sunday and he didn't want millions of visitors to be turned away from closed shops.
The relaxation of the rules will only be for eight Sundays until the end of the Paralympic Games on Sept. 9.
US shopping centre evacuated a bear strolls in to department store - ITV
A shopping centre had to be evacuated after a bear was spotted inside one of its stores. The animal ran through the car park of centre in Pennsylvania in the United States. It went into a Sears department store through an automatic door.
The bear walked around for about 10 minutes and growled at customers, then became stuck between double doors. It was tranquilised, removed and taken to its natural home.
No comments:
Post a Comment