World's Largest Geothermal is Formed

Fortnightly Magazine - January 15 1995
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EEI Annual Meeting 2024 - June 18-20
After much contention, California Energy Co. Inc. and Magma Power Co., both geothermal energy producers, have signed a merger agreement that will give Magma

stockholders $39 a share, or about $950 million in aggregate value. The agreement has been approved by both boards of directors. California Energy's tender offer included shares representing a majority of the voting power of Magma as well as funding of financing. The merger is also conditioned on the approval of California Energy's shareholders. Magma has agreed not to apply its "poison pill" shareholder rights plan to the tender offer and merger, and to waive applicable Nevada anti-takeover statutes. Both have agreed to terminate all pending litigation between themselves. Once merged, the companies will produce about 545 megawatts (MW) of power, with an additional 530 MW under construction. With revenues in excess of $400 million, the new firm will be the largest independent geothermal power company in the world. (em LB


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