Exelon Offers To Acquire NRG Energy

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Chicago-based Exelon Corp. has announced its proposal to acquire Princeton, N.J.-based NRG Energy Inc., whose operations include Padoma Wind Power.

In a letter delivered to NRG president and CEO David Crane and Chairman Howard Cosgrove, Exelon proposed to acquire all of NRG's outstanding common stock in an all-stock transaction with a fixed exchange ratio of 0.485 Exelon shares for each NRG share, which represents a value of approximately $26.43 for each NRG common share, based on the Exelon closing price of $54.50 in trading on Oct 17. The offer represents a 37% premium to the Oct. 17 closing price for NRG shares.

‘An Exelon-NRG combination would result in a total enterprise value of approximately $60 billion, with a generating capacity of around 47,000 MW – or enough electricity to serve nearly 37 million average American households,’ says John W. Rowe, chairman and CEO of Exelon.

NRG Energy confirmed that it has received an unsolicited proposal from Exelon. The company's board of directors will review Exelon's proposal with its advisors and determine the appropriate response in due course.

Citigroup Global Markets Inc. and Credit Suisse Securities LLC are serving as financial advisors, and Kirkland & Ellis LLP is serving as legal counsel to NRG.

SOURCES: Exelon Corp., NRG Energy Inc.

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