Boralex takes full control of 296-MW wind portfolio in Quebec
Wind turbines in Quebec. Author: Dennis Jarvis. License: Creative Commons, Attribution-ShareAlike 2.0 Generic
Canadian renewable energy company Boralex Inc (TSE:BLX) said today it will acquire the minority stake it does not already have in three wind farms in Quebec with a combined capacity of 296 MW.
Specifically, Boralex will buy the 49% equity interest, representing 145 MW of net installed capacity, from the Caisse de dépôt et placement du Québec (CDPQ) for a cash consideration of CAD 121.5 million (USD 93m/EUR 78.4m). A further payment of up to CAD 4 million could be made upon meeting certain future conditions.
The transaction will close later this month, boosting Boralex’s installed capacity to 2,212 MW.
The wind farms in question are: the 136-MW Des Moulins I; the 21-MW Des Moulins II; and the 139-MW Le Plateau I. Both Des Moulins plants are covered by an existing power purchase agreement (PPA) with Hydro-Québec Distribution that expires in December 2033, while the third facility has a contract that expires in March 2032.
“Operating these wind farms provided the expected synergies and has yielded results 10% better than we had expected in 2019,” said Patrick Lemaire, Boralex’s president and CEO. Patrick Decostre, Boralex’s vice president and COO, in turn, added that taking full ownership of the assets will “add significant cash flow for the coming years and a positive contribution to the company’s discretionary cash flow per share in the first year after the transaction closes.”