Houston-based Dynegy Inc. (NYSE: DYN) and as many as four private-equity firms are bidding on Duke Energy’s fleet of 13 commercial power plants in the Midwest, The Wall Street Journal reports.
Eleven of the plants are in Ohio, and there is one in Illinois and one in Pennsylvania. Analyst Hugh Wynne pegged the value of the fleet at around $2 billion when Duke first announced its plans to sell in February. Filings by the company indicate a combined value of between $1.5 billion and $2.5 billion for the plants.
Dynegy went through a bankruptcy in 2012, emerging in October of that year.
The Journal quotes unnamed sources to report on the bidders for the project. It says:
The Houston-based power company is competing against several private-equity firms that have submitted first-round bids for the gas-and coal-fueled plants in Ohio, Illinois and Pennsylvania. Blackstone Group BX +2.14% LP and Riverstone Holdings LLC have teamed up to bid on the plants, people familiar with the matter have said. Other bidders for the Duke power plants include Energy Investors Funds and Energy Capital Partners, according to people familiar with the matter.
Charlotte, North Carolina-based Duke (NYSE: DUK) has said it expects to complete the sale by August 2015. Citigroup and Morgan Stanley are advising the company on the sale.
Article and Image sourced from bizjournals.com June 10th, 2014