NEW YORK (AP) -- Dynegy Inc. on Tuesday said it completed its previously announced sale of generation assets to LS Power, a move that it said boosts liquidity, adds to earnings and transforms Dynegy into a 100 percent publicly held company.

Houston-based Dynegy sold to LS Power five peaking and three combined-cycle generation assets, as well as Dynegy's remaining interest in a project under construction in Texas. In return, LS Power paid $970 million in cash and 245 million shares of Dynegy stock.

LS Power, a private New York company, also received a senior unsecured note of $235 million in the transaction.

Dynegy said the sale raised its liquidity to about $3 billion, enabling it to pay off near-term debt. The transaction is immediately accretive to Dynegy's adjusted earnings before interest, taxes, depreciation and amortization on a per share basis, as well as to earnings per share attributable to common stockholders, Dynegy said.

"We also redeemed about 30 percent of our outstanding shares, eliminating the dual-class stock structure and associated rights and restrictions," said Bruce Williamson, CEO. This resulted in a streamlined 100 percent publicly held share ownership structure.

Shares of the company rose 8 cents, or 4 percent, to $1.88 in afternoon trading.