The 30-day "go shop" solicitation period, wherein EnergySolutions could seek alternative acquisition offers to the one it announced with Energy Capital Partners early this year, will end tonight at midnight. On Jan. 7, EnergySolutions entered into an agreement to be acquired by ECP in a deal estimated to be worth approximately $1.1 billion, or $3.75 per share. If the “go shop” period ends without another offer, EnergySolutions will file a proxy statement with the Securities and Exchange Commission outlining the history of the acquisition proposal. In January, the company told shareholders upset at the perceived undervaluation of the company in the ECP offer that the proxy statement would make the case for taking the deal. Shareholders will have to vote to approve the ECP offer, or not, if another offer is not accepted. EnergySolutions spokesman Mark Walker confirmed the “go shop” period ends tonight, but said the company will not comment until Thursday.
If approved by stakeholders, the ECP acquisition would allow EnergySolutions access to ready capital, something the company has been struggling to do in its recent attempts to pay down debt and streamline its business. With the benefit of ECP’s access to more than $7 billion in capital, EnergySolutions could eliminate its debt and pursue projects like the turnkey decommissioning of the Zion nuclear power plant without financial commitments—like the $200 million letter of credit Exelon required for Zion—eating away at margins.