Posts for Ticker ‘GGA’

SPAC One Step Closer to First Acquisition (GGA, GS)

GCA Acquisition (AMEX:GGA) has received anti-trust clearance related to its proposed $1.3 billion purchase of merchant power generator Complete Energy. Complete Energy owns two natural-gas-fired combined-cycle power plants:

  • the 1,022-megawatt La Paloma plant near Bakersfield, California,
  • and the 837-megawatt Batesville, Mississippi plant.

All of Batesville’s capacity is committed under long-term contracts with J Aron & Company, a subsidiary of Goldman Sachs (NYSE:GS) and a Mississippi utility company. The Bakersfield plant has two tolling agreements for about half its capacity, with the remaining capacity sold on the California merchant power market.

Following completion of the merger, investment funds managed by The TCW Group will own about 19% of Complete Energy; existing GCA shareholders will own about 42%; and the current owners of Complete Energy will own 10%. This is a very good deal for every stakeholder, promising dependable, if not massive, returns, increased access to financing for Complete Energy, and experienced management to run the show.

It appears that shareholder approval is still an outstanding issue, although with this being energy it seems that the approval would be more likely than some other SPAC conversions.

Paul Ausick
June 4, 2008

Posted on: June 4, 2008 – 8:29 am in Mergers and Buy Outs, Oil & Gas, Utilities, ,

SPAC Going Operational: GSC Acquisition Into Complete Energy (GGA)

With all the Special Purpose Acquisition Companies (SPAC’s) that have filed to come public, many SPAC’s haven’t proposed an actual business move they are designed to execute. Blank check company GSC Acquisition Company (AMEX: GGA) announced a proposed merger with Complete Energy, an independent power generation company with assets in California and the Southeast. GSC values Complete Energy at $1.3 billion. Complete Energy stakeholders will receive 44 million shares and GSC will own 42% of the new company on a fully diluted basis.

Hugh Tarpley, co-founder of Complete Energy, will act as CEO. GSC went public June 2007 for $10 per share and generated $167.4 million in proceeds. Shares are up over 1% today at $9.36. The market cap sits at approximately $235 million.

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Rachel Lopez
May 12, 2008

Posted on: May 12, 2008 – 12:43 pm in Mergers and Buy Outs,