KGen Power, a company that sells power and related products to wholesale purchasers, has paid $35 million in connection with the termination of its purchase and sale agreement executed with affiliates of Complete Energy Holdings for capacity at two power plants.
The acquisition was to include 1,859MW of capacity at two electric power generating plants, the La Paloma site in California and the Batesville site in Mississippi, for $1.3 billion plus working capital adjustments.
KGen Power (KGen) cited several factors contributing to the decision to terminate the transaction, including lengthy, unplanned outages at the plants and prevailing conditions in the capital markets.
Gerald Lindner, chairman and CEO of KGen, said: These multiple factors have led us to decide it is in the best interest of the company not to consummate the transaction.
We believe that by not pursing this particular acquisition we can better maintain the flexibility of our balance sheet in a turbulent market and will be poised to take advantage of future opportunities with more attractive terms.