Deal includes 634 MW generation at The Geysers geothermal field
Private equity firm Energy Capital Partners and a consortium of investors struck a deal to buy U.S. power generator Calpine Corp. for $5.6 billion in cash.
Calpine investors will get $15.25 a share, the Houston-based company said in a statement on Friday, 13 percent more than Thursday’s closing price. Including debt, the deal is valued at more than $17 billion. The investor group includes Access Industries and Canada Pension Plan Investment Board. Shares of Calpine jumped to the highest in more than a year.
Power generators that sell supplies directly into wholesale markets like Calpine have seen their margins squeezed by cheap natural gas, a surge in renewable energy and subsidies for nuclear reactors in some states.
Calpine operates 13 geothermal power plants at The Geysers, north of San Francisco, California, generating 634.1 net megawatts
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