(Reuters) – Blackstone Group (BX.N) said on Friday it will buy power producer Dynegy Inc (DYN.N) for $543 million in cash and sell four of its power plants to NRG Energy (NRG.N) in the latest shake-up in the hard-hit power industry.
Dynegy shareholders will receive $4.50 in cash per share, a 62 percent premium over Thursday’s closing price. Blackstone will also take on more than $4 billion in Dynegy debt.
Under a separate agreement, Blackstone will sell to NRG Energy four natural gas-fired assets currently owned by Dynegy for approximately $1.36 billion in cash.
Dynegy, like other power producers, has been hurt by slack power sales as the weak U.S. economy sapped consumption and pressured prices.
Earlier this year, independent power producer Mirant Corp said it would take over RRI Energy in an effort to squeeze efficiencies and increase the scale of their operations.
Dynegy has long sought to merge with a peer, but the weak market conditions made winning a deal difficult.
Shares of Dynegy jumped to $4.49 in premarket trade, while Blackstone shares were near unchanged at $11.00 (Reporting by Matt Daily and Megan Davies; Editing by Derek Caney)