Innergex Renewable Energy to acquire Alterra Power Corp
Innergex Renewable Energy Inc. and Alterra Power Corp. have announced that they have entered into an arrangement agreement pursuant to which Innergex will acquire all of the issued and outstanding common shares of Alterra (the “Alterra Common Shares”) for an aggregate consideration of $1.1 billion, including the assumption of Alterra’s debt.The Transaction is subject to approval by Alterra’s shareholders and other customary closing conditions. Pursuant to 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 “Innergex Common Shares”). The price of $8.25 per Alterra Common Shares implies a premium of 58% to Alterra’s 20-day volume weighted average price of $5.21 on the TSX as of October 27, 2017.
“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 2,000 MW by 2020,” said Michel Letellier, President and Chief Executive Officer of Innergex. “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 U.S. and operating geothermal assets in Iceland. Further, we believe that the addition of Alterra’s seasoned and experienced team to Innergex’s team enhances our ability to concurrently develop multiple projects across many geographies.”
“This is an excellent transaction for Alterra shareholders,” said Ross Beaty, Executive Chairman of Alterra. “It offers a significant premium and the opportunity for Alterra shareholders to remain exposed to Alterra’s assets, including our growth pipeline. Innergex is an outstanding Canadian clean energy company with highly complementary renewable energy assets to those of Alterra and a similar corporate culture. The combined company will have a lower cost of capital, stronger balance sheet, more diversified asset base and greater capacity to grow rapidly and efficiently. I look forward to tendering my Alterra shares into Innergex and remaining a significant shareholder for many years to come.”
