WASHINGTON (AFP) — Private equity buyers Wednesday finalized a massive deal to buy Texas utility TXU Corp., and promptly renamed the company Energy Future Holdings Corp., headed by former commerce secretary Donald Evans.
The deal, one of the biggest private buyouts on record, gives the company to a group of investors including Kohlberg Kravis Roberts & Co., Texas Pacific Group (TPG) and Goldman Sachs Capital Partners.
TXU immediately changed its name to Energy Future Holdings Corp. and said shares of the old company will be delisted.
The deal announced in February was estimated at 45 billion dollars, the largest in a wave of private equity deals fueled at the time by easy credit.
TXU shareholders will receive 69.25 dollars in cash per share.
"Completion of the merger agreement marks the final step in the transformation into a privately held company that is already delivering price cuts, price protection and low-income customer benefits, as well as taking actions to provide affordable power for years to come," the new owners said in a statement.
"In addition, the company will seek to achieve top environmental performance in the industry and greater involvement and dialogue with environmental, government and community leaders."
With the close of the transaction, Donald Evans becomes non-executive chairman of Energy Future Holdings Corp. Evans previously served as secretary of commerce for four years under President George W. Bush.
To maintain continuity, current business unit management and organizational structures will remain in place during a transition period expected to end in the first half of 2008.
The company said it was following through on a commitment to reduce the number of planned coal-fired power plants from 11 to three.
In addition, the company will create a "sustainable energy advisory board" to guide future policies.
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