Energy Capital Partners has announced that they will acquire Calpine Corp. (NYSE: CPN) for $5.6 billion. Following this announcement, shares of Calpine increased 10.5% at $14.93 in premarket trading on Friday. The $15.25 cash per share offer represents a 13% premium to Calpine's closing price on Thursday.
Calpine as well as other United States power producers have been hit by low wholesale power prices due to cheap natural gas, increasing renewable energy, as well as subsidized nuclear generation in a couple of states. The company relies mostly on natural gas to generate power and owns about 80 power plants in the country and Canada.
Back in July, the company was discussing a sale after reporting a quarterly loss with debt totaling to about $11.31 billion. Canada Pension Plan Investment Board also plans on investing $750 million in Calpine.