NEW YORK (TheStreet) -- PPL Corp (PPL) shares are up 2.28% to $35.00 in early market trading on Tuesday following news that it is planning to spinoff its power plant unit, PPL Energy Supply.
Energy investment firm Riverstone Holdings will be adding the unit to its portfolio as the company transitions to a public company called Talen Energy.
PPL Corp shareholders will own 65% of the new company with Riverside Holdings owning the other 35% upon the closing of the deal.
The new company will be one of the largest independent power producers in the country with more than 15,000 megawatts of generating capacity in multiple markets in the U.S.
TheStreet Ratings team rates PPL CORP as a Buy with a ratings score of A-. TheStreet Ratings Team has this to say about their recommendation:
"We rate PPL CORP (PPL) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its expanding profit margins, good cash flow from operations, reasonable valuation levels and increase in stock price during the past year. We feel these strengths outweigh the fact that the company has had sub par growth in net income."