Canadian Imperial Venture intends to buy offshore wind firm Beothuk

Sep 11, 2014 - Canadian Imperial Venture Corp (CVE:CQV) said yesterday it plans to acquire Beothuk Energy Inc (BEI), the developer of a pilot 180-MW offshore wind project in the province of Newfoundland and Labrador.

The Canadian resource company has entered into a letter of intent (LoI) to buy every issued and outstanding Beothuk share in exchange for one common CQV share. The completion of the transaction, which is subject to signing a formal deal, is expected to occur on or about November 1, 2014. No financial terms were disclosed at this point.

Beothuk plans to install a 180-MW offshore wind park in St George’s Bay, western Newfoundland and Labrador. The CAD-400-million (USD 364m/EUR 281m) project will use gravity-based foundations and as many as 30 wind turbines. The company also intends to build a factory for gravity-based turbine structures at Canada’s Corner Brook port. Beothuk has estimated that the electricity generated at the wind park will cost less than CAD 0.10 per kWh.

Commenting on the proposed acquisition, Canadian Imperial’s CEO Gerard Edwards said it will allow the resource firm to enter the highly profitable emerging green energy sector in North America and at the same time balance its business portfolio.

(CAD 1.0 = USD 0.909/EUR 0.704)

Choose your newsletter by Renewables Now. Join for free!