Summary by Moomoo AI
Vistra Corp. announced agreements to acquire the remaining 15% equity interest in Vistra Vision LLC from Nuveen Asset Management and Avenue Capital Management for $3.248 billion in cash. The transaction will make Vistra the sole owner of its zero-carbon nuclear, energy storage, solar generation assets, and retail business operations. The closing is expected on December 31, 2024.The purchase price will be paid in five installments from December 2024 through December 2026, with a net present value of $3.085 billion at a 6% discount rate. The initial payment will be adjusted based on dividend distributions to minority investors, with a $165 million threshold for 2024. The transaction requires no regulatory approvals.Vistra maintains its capital allocation priorities, including a long-term net leverage target below 3x, planned share repurchases of at least $2.25 billion in 2024-2025 and $1 billion in 2026, plus annual common dividends of $300 million through 2026. The deal is expected to exceed mid-teens levered return thresholds and provide immediate shareholder accretion.
