DAYTON — AES Corp. on Monday quickly completed a $3.5 billion merger to absorb DPL Inc., the parent of Dayton area’s primary electric utility.
Under terms of the merger, owners of DPL’s common stock are to receive $30 in cash from AES for each share. Checks should be sent out to DPL shareholders this week, AES spokesman Rich Bulger said in an email response to the Dayton Daily News.
With the Dec. 1 date approaching for DPL’s dividend payments, the company’s shareholders will be receiving prorated payments, according to AES.
DPL becomes a wholly owned subsidiary of AES, a Fortune 200 company based in Arlington, Va., that has electricity generating and distribution operations on five continents. AES has not yet decided whether to retain DPL’s senior leadership, Bulger said.
The deal ends the 100-year existence of DPL-owned Dayton Power and Light Co. as an independent company. AES has promised to keep DPL’s headquarters in Dayton for at least five years, and not to reduce Dayton Power and Light’s work force below 90 percent of its current level of approximately 1,500 people for at least three years.
DP&L expects to continue paying dividends to holders of the utility’s preferred stock, AES officials said.
The merger should not affect the pensions of DP&L retirees, because the parent company DPL contributed $80 million to the pension plan in 2010 and 2011 and it is currently meeting federal requirements for funding levels, AES officials said.
AES agreed to assume $1.2 billion of DPL debt as part of the merger.
AES also owns Indianapolis Power & Light Co., which it bought in 2001. AES said it wanted DP&L in order to expand the new owner’s presence in the Midwest.
AES has promised not to pass along to DP&L ratepayers any expenses directly related to the negotiation, approval and closing of the merger.
Contact this reporter at (937) 225-2242 or jnolan@DaytonDailyNews.com.