November 20 (Renewables Now) - The shareholders of Canadian clean energy company Alterra Power Corp (TSE:AXY) will vote on December 14 on the proposal by Innergex Renewable Energy Inc (TSE:INE) to acquire all of Alterra.
The target company, which owns 364 MW net of renewable power generation capacity in operation and 118 MW under construction, said Thursday it has been granted an interim order from the British Columbia Supreme Court allowing it to hold the special meeting of Alterra shareholders next month.
Shareholders of record as of November 7 can vote at the special meeting. The CAD-1.1-billion (USD 861.3m/EUR 731.4m) acquisition agreement, which includes the assumption of debt, needs to be approved by shareholders owning at least two thirds of Alterra's common shares.
As announced in October, Innergex has agreed to acquire Alterra, offering the target’s shareholders a choice between receiving CAD 8.25 in cash or 0.5563 Innergex common shares per Alterra common share. The aggregate consideration paid to all of Alterra shareholders will be 25% cash and 75% Innergex stock.
Alterra’s board unanimously supports the acquisition by Innergex and recommends that shareholders give the green light to the transaction.
The deal will diversify Innergex’s portfolio both in terms of technology and geography. It will add geothermal and hydro power assets in Iceland to the company’s mix, and wind and solar capacity in the US, as well as hydro and wind in Canada. The buyer said last month it expected the transaction to close in the first quarter of 2018, subject to securing regulatory approvals and key third-party consents.
(CAD 1 = USD 0.78/EUR 0.66)