November 8 (Renewables Now) - Pattern Energy Group Inc (NASDAQ:PEGI) has agreed to sell its 90-MW interest in the K2 wind farm in Ontario for the sum of CAD 216 million (USD 164.8m/EUR 144.2m).
The buyer is a consortium of investors led by Axium Infrastructure. With the deal, expected to close by the end of the year, Pattern will be able to redeploy capital into more accretive opportunities, it said on Wednesday.
The whole 270-MW K2 wind power facility, located in the Township of Ashfield-Colborne-Wawanosh, started commercial operations in June 2015. The park was a joint venture between Pattern Energy, an Axium-led consortium and Capital Power Corporation. The latter has also agreed to sell its interest to the Axium consortium, under the same agreement.
Pattern Energy expects a pre-tax gain of between USD 65 million and USD 69 million on the sale, subject to fourth-quarter results. The company is to keep receiving cash flows from the power plant through the end of 2018.
"We have now sold two assets, El Arrayán and K2, at significant premiums to the multiple at which we trade in the markets,” said Mike Garland, CEO of Pattern Energy.
(CAD 1 = USD 0.76/EUR 0.67)