In a move calculated to bolster support among shareholders, EnergySolutions announced late last week that Energy Capital Partners agreed to raise its bid to acquire the company from $3.75 per share to $4.15. The new bid reflects a per-share price within the range many analysts had valued EnergySolutions when it announced the proposed acquisition in January, and appears to have swayed the vote of Carlson Capital, L.P., EnergySolutions’ largest beneficial institutional stock owner, who had previously voiced opposition to the acquisition. Carlson “has informed the Company that they intend to vote in favor of the transaction based on the amended terms,” EnergySolutions said in an April 5 release. Tyler Reeder, a Partner at ECP, said in a statement: “We have increased the purchase price principally to gain broader support of shareholders for this transaction. The increased offer reflects our dedication to EnergySolutions and the important work that they do.” ECP also made clear, in no uncertain terms, that the adjusted per share price is a "best and final" offer. After the announcement of the sale, EnergySolutions stock price shot up by 10 percent, from $3.72 to $4.13 within 10 minutes.
EnergySolutions had been visiting with major shareholders recently, vigorously making the case that without approval for the proposed sale, the outlook for the company is bleak. But with many maintaining that ECP’s offer undervalued the company, the threat of a ‘no’ vote loomed large of the April 26 vote. “We are extremely pleased to have reached this amended agreement with Energy Capital,” David Lockwood, CEO and President of EnergySolutions, said in a statement. “We strongly believe that this offer provides compelling value for our shareholders and will enables us to continue to execute on our strategic plan by providing the investment capital to de-lever our balance sheet and grow our business. We have been able to visit with many of our larger shareholders and value their support of this transaction.” The ECP acquisition of EnergySolutions is subject to remaining closing conditions, including regulatory approvals by the Nuclear Regulatory Commission and the State of Utah as well as approval by EnergySolutions’ stockholders at the special stockholders meeting on April 26, 2013.
