Under the agreement signed earlier, Dynegy will acquire interests in 11 power plants and Duke Energy Retail Sales, the company’s competitive retail business in Ohio, US.
The transaction proceeds will be used by Duke Energy to repurchase shares of the common stock through an accelerated share repurchase (ASR) program and to pay down debt and fund 2015 capital investments.
Duke Energy president, CEO and vice chairman Lynn Good said: "This transaction allows Duke Energy to sharpen our focus to better meet our customers’ needs, while creating additional long-term value for our investors.
Duke Energy executive vice president and CFO Steve Young said: "Proceeds will be deployed in a disciplined manner, ensuring accretive returns for our shareholders and support for future growth initiatives."
The transaction is expected to be accretive to the adjusted diluted EPS of the company within the first 12 months after closing.
Duke Energy has commercial power and international energy business segments, which own and operate diverse power generation assets in North America and Latin America, including a portfolio of renewable energy assets in the US.
