NEW YORK (TheStreet) -- Shares of Dynegy (DYN) are down 0.83% to $16.71 on heavy trading volume Wednesday as the company said it would acquire Energy Capital Partners' interest in their joint venture to purchase French electric utility Engie's U.S. fossil portfolio.
The Houston-based electric utility company said it would buy Energy Capital's 35% stake of the upfront equity funding at closing for $375 million, according to a statement. Dynegy values the transaction at $750 million.
Dynegy in February agreed to pay at least $519 million to buy out Energy Capital Partners' stake, Bloomberg reports. At the time, Energy Capital Partners agreed to pay $150 million to boost its stake of Dynegy to 15% to fund a portion of the Engie plants acquisition through the joint venture called Atlas Power.
"As we indicated in February, Dynegy's intent has consistently been to fully own the ENGIE U.S. fossil portfolio. The significant improvement in the financial markets since announcing the transaction in February provided an excellent opportunity for us to approach ECP about an earlier timetable," Dynegy CEO Robert Flexon said in a statement.
About 7.08 million of the company's shares were traded so far today compared to its average volume of 2.37 million shares per day.
Separately, TheStreet Ratings Team has a "Sell" rating with a score of D+ on the stock.
The company's weaknesses can be seen in multiple areas, such as its generally disappointing historical performance in the stock itself, generally high debt management risk and poor profit margins.
Recently, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.
You can view the full analysis from the report here: DYN