Home / Business and Economy / LS Power Eyes $2.1B NRG Stake Sale
LS Power Eyes $2.1B NRG Stake Sale
3 Mar
Summary
- LS Power plans to sell up to $2.1 billion in NRG Energy stock.
- The sale is happening despite market indifference to Iran conflict.
- NRG Energy acquired LS Power's power plants for $12 billion.
LS Power is reportedly aiming to secure up to $2.1 billion through the sale of a portion of its holdings in NRG Energy Inc. The company is offering approximately 12.3 million shares, with pricing set between $163.50 and $168 per share. This price point represents a potential discount of up to 6.9% compared to NRG Energy's closing price on Monday.
The sale of these shares follows the completion of an acquisition of certain LS Power entities late last month. The shares were marketed confidentially prior to this public offering. It is noteworthy that NRG Energy had previously agreed in May to purchase a fleet of natural gas-fired power plants from LS Power for roughly $12 billion, including debt, recognizing natural gas's critical role in meeting data center electricity demands.
The stock offering is being managed by Barclays Plc and Citigroup Inc. The market's reaction to the news saw NRG Energy shares fall 3.8% in after-hours trading on Monday, closing at $169. Details of the offering remain subject to change.
