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Innergex Renewable Energy to acquire Alterra Power

CTBR Staff Writer Published 31 October 2017

Innergex Renewable Energy has entered into an agreement to acquire Alterra Power for a consideration of C$1.1bn ($857.8m).

The transaction amount will be paid 25% in cash and the remaining 75% will be in Innergex’s shares.

It is expected to be completed in next year’s first quarter, subject to regulatory approvals in the US and Canada.

Innergex president and CEO Michel Letellier said: "This transaction is highly strategic and accretive for Innergex as we believe it significantly accelerates Innergex's growth profile with a path to reach a net installed capacity of over 2,000 MW by 2020.

"The geographic and energy sources profile of Alterra's portfolio further diversifies Innergex's asset base by adding operating hydro and wind projects in Canada, a large number of operating, under construction and prospective wind projects in the US and operating geothermal assets in Iceland."

Innergex opines that acquiring Alterra will result in increasing its geographic and technological diversification through meaningful presence in the US and Icelandic power markets. Innergex will also benefit by adding geothermal power to its production mix.

The acquisition is expected to enable Innergex to increase its overall net power generation capacity by more than 40% to 16.06GW. It will be adding three advanced-stage prospective projects with total capacity of 686MW. Innergex will also gain several other prospective projects in the US qualified for renewable production tax credit (PTC) totalling 490MW.

An extensive pipeline of prospective projects in preliminary stages or in progress are estimated with a capacity of 4.35GW will be added to Innergex's pipeline of net capacity of 3.56GW.

Image: Innergex’s acquisition of Alterra Power is expected to be completed next year. Photo: Courtesy of guido muermann/FreeImages.com.