AEG Represents Client in $14.8MM Sale of Texas Assets
in Retail Electricity Market
October 28, 2008
HOUSTON--(BUSINESS WIRE)--AEG Affiliated Energy Group represented its client, Commerce Energy Group, Inc., in connection with a transaction announced yesterday, in which Commerce Energy sold all of its retail electric service contracts in Texas to Ambit Energy, LP for an estimated $14.8 million.
AEG has also been retained by other Texas firms seeking to explore strategic merger and acquisition opportunities, including a mid-size Texas retail electricity provider. AEG provides a range of financial services specializing in wholesale and retail energy procurement and hedging strategies, energy-related mergers, acquisitions and venture capital transactions, and electric power project development and consulting.
“The Texas deregulated electricity markets remain attractive, which is further emphasized by the completion of deals on terms mutually beneficial to sellers and buyers despite unprecedented disruptions in the global financial and credit markets,” noted Rob S. Potosky, Executive Vice President of AEG Affiliated Energy Group. “The disruptions to the financial markets have unquestionably changed the M&A landscape here in Texas, but deals involving quality assets are still getting done. One new emerging trend appears to be an increased reliance on direct and indirect financing from overseas markets and multinational companies, the U.K. and northern Europe in particular.”
“Another emerging trend is more extensive due diligence being conducted by buyers, usually driven by parties providing the financing. Parties looking to sell their assets or raise money will likely encounter major obstacles if unwilling or incapable of complying with more thorough due diligence requests versus what may have been customary a couple of years ago,” added Chad Price, Executive Vice President of AEG Affiliated Energy Group.
About AEG Affiliated Energy Group
AEG is an energy and financial services firm headquartered in Houston, Texas. The company specializes in energy-related mergers, acquisitions and venture capital transactions; wholesale energy procurement; energy procurement and consulting for commercial and governmental end users of electricity; regulatory and legislative affairs; electric power plant development services along with consulting services to REPs. For more information, visit www.affiliatedenergy.com. Nothing herein constitutes any type of offer, solicitation, recommendation or advice with regard to the sale, marketing, brokerage, dealing, or purchase of any securities or commodities.
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