Shell Just Sold a $715 Million Stake in a Major New England Asset to Constellation Energy. Here's What Investors Need to Know.
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This is the No. 1 electricity plant in the state. RISEC is expected to be immediately accretive to its new owner upon completion. A large energy asset in New England is about to change hands, if an agreed-upon new deal ends up closing. Global energy giant Shell (NYSE:SHEL) has signed a deal for one of its subsidiaries to sell the business that owns the Rhode Island State Energy Center (RISEC). The buyer is the sprawling U.S. utility company Constellation Energy (NASDAQ:CEG) , and the price is $715 million. RISEC is the No. 1 electricity-generating facility in its state by output; that, plus the transaction's price tag, makes this deal meaningful. Here's how it'll impact both companies. Missed Nvidia in 2009? This Rare Signal Is Flashing Again. In 2009, a "Double Down" signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same "Total Conviction" signal is flashing for a company 1/100th the size of Nvidia. Continue » Image source: Getty Images. That $715 million will be paid entirely in cash by Constellation and is subject to customary purchase price adjustments. Constellation wrote in its press release about the arrangement that the effective net cash outlay is $580 million, due to $135 million in expected first-year tax benefits. The sale is subject to approval by the relevant regulatory authorities. Both companies said they expect it...
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