Vistra to acquire remaining 15% stake in Vistra Vision for $3.25 billion

Vistra has signed definitive agreements to acquire the remaining 15% equity interest in its subsidiary, Vistra Vision, from affiliates of Nuveen Asset Management and Avenue Capital Management II LP. This acquisition will make Vistra the sole owner of Vistra Vision, which holds key assets, including the 6.4 GW Comanche Peak, Beaver Valley, Davis-Besse, and Perry nuclear generation facilities, along with the Vistra Zero renewables and energy storage business.

The $3.248 billion cash transaction, set to close on 31 December 2024, will be paid in five instalments, with the first payment of $1.18 billion due at closing. Adjustments will be made based on dividends received by the selling parties in 2024. The net present value of the deal, discounted at 6%, is $3.085 billion.

The deal requires no regulatory approvals and aligns with Vistra’s capital allocation priorities, including $2.25 billion in share repurchases planned for 2024 and 2025, and $1 billion in 2026.

Citi is advising Vistra, with legal counsel from Latham & Watkins and Sidley Austin, while Nuveen and Avenue are represented by Evercore and PJT Partners, with legal support from Kramer Levin Naftalis & Frankel.