June 10 (Reuters) - PPL Corp and Riverstone Holdings LLC on Monday said they would combine their merchant power generation businesses into a new stand-alone, publicly traded independent power producer.
The new company, which will own and operate a diverse mix of 15,320 megawatts of generating capacity in key U.S. energy markets, will be called Talen Energy Corp and will be listed on the New York Stock Exchange, the companies said in a statement.
PPL shareholders will receive a pro-rata distribution of Talen Energy shares based on the number of PPL shares owned.
Upon closing, PPL’s shareowners will own 65 percent of Talen Energy and Riverstone will own 35 percent. PPL will have no continuing ownership interest in Talen Energy.
Financial terms of the deal were not disclosed.
The spinoff will have no effect on the ownership of PPL Corp’s common stock and there will be no change in the number of shares outstanding, the company said.
Paul Farr, PPL’s chief financial officer, will be Talen Energy’s Chief Executive, and Jeremy McGuire, PPL’s vice president of strategic development, will become the CFO. (Reporting by Supriya Kurane in Bangalore; Editing by Gopakumar Warrier)