Innergex makes Alterra play
$1.1bn acquisition includes operating assets totalling 364MW
Innergex Renewable Energy is to acquire fellow Canadian company Alterra Power for $1.1bn, including the assumption of the latter’s debt.
The deal is subject to the approval by Alterra's shareholders and other customary closing conditions, Innergex said.
The acquisition will add eight operating wind, solar, hydro and geothermal projects totalling 364MW to Innergex’s portfolio, as well as three under construction facilities with a combined capacity of 118MW.
There are also three further projects at an advanced stage totalling 686MW and prospective plants in the US – which would qualify for the production tax credit – with total capacity of 490MW.
More than 4.3GW of projects are also in preliminary stages of development or in progress.
Under the terms of the transaction, Alterra shareholders will receive an aggregate consideration which will consist of approximately 25% in cash and 75% in common shares of Innergex.
The price of $8.25 per Alterra common share is a premium of 58% to Alterra's 20-day volume weighted average price of $5.21 on the Toronto Stock Exchange on 27 October.
Innergex president and chief executive Michel Letellier said: “This transaction is highly strategic and accretive for Innergex as we believe it significantly accelerates Innergex’s growth profile with a path to reach a net installed capacity of over 2000MW by 2020.
“The geographic and energy sources profile of Alterra's portfolio further diversifies Innergex’s asset base by adding operating hydro and wind projects in Canada, a large number of operating, under construction and prospective wind projects in the US and operating geothermal assets in Iceland.”
Alterra executive chairman Ross Beaty said: “This is an excellent transaction for Alterra shareholders. It offers a significant premium and the opportunity for Alterra shareholders to remain exposed to Alterra's assets, including our growth pipeline.”