February 7 (Renewables Now) - Canadian firm Innergex Renewable Energy Inc (TSE:INE) said on Tuesday it has closed the CAD-1.1-billion (USD 880m/EUR 711m) acquisition of compatriot clean energy company Alterra Power Corp (CVE:AXY).
The acquisition, which includes the assumption of Alterra’s debt, adds 485 MW of operational and under-construction renewable energy assets to Innergex’s portfolio. Among those are geothermal and hydro power assets in Iceland, wind and solar capacity in the US, as well as hydro and wind in Canada.
Following the deal, announced at the end of October 2017, Innergex will lift its total net installed generation capacity to 1,609 MW, with the figure seen to surpass 2,000 MW by 2020. In addition, the buyer will get a pipeline of projects in preliminary stages or in progress with a net capacity of over 5,000 MW.
“Our acquisition of Alterra is about accelerating our growth and taking Innergex to the next level,” said Michel Letellier, Innergex’s president and CEO. He added that the acquisition will help the company expand its foothold in the US, Canada, Latin America and Europe.
As previously announced, Innergex offered Alterra’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 was 25% cash and 75% Innergex stock.
Innergex financed the cash portion of the acquisition with a CAD-150-million five-year term loan from La Caisse de Depot et placement du Quebec, one of its major shareholders, and existing revolving credit facilities.
Alterra’s stock will be delisted from the Toronto stock exchange after the market closes on February 7.
(CAD 1.0 = USD 0.800/EUR 0.646)