ALTERRA POWER CORP (OTCMKTS:MGMXF) shares gained 19.22% after Innergex Renewable energy announced plans to acquire it in a transaction worth $857.83 million. Alterra shareholders are to receive C$8.25 per share, payable in C$2.06 cash and 0.4172 of common share of INNERGEX RENEWABLE (OTCMKTS:INGXF).
Innergex Takeover Bid
The acquisition bid represents a 62.7% premium to Altera’s last close of C$5.07. Investors reacted to the 62.7% premium by pushing the stock higher consequently registering a new 52-week high of $6.12 share. For the full year, the stock is now up by more than 50%.
ALTERRA POWER CORP (OTCMKTS:MGMXF) is a renewable energy company. The company operates eight power plants with a capacity of 825MW of hydro, wind, geothermal and solar generation. The company is currently constructing a 200MW Flat Top wind project in Texas, which once complete will operate nine power plants with a capacity of 1,025MW.
$133 Million Financing
In September, ALTERRA POWER CORP (OTCMKTS:MGMXF) executed a $133 million refinancing at its Icelandic subsidiary HS Orka HF. The primary use of the loan is to construct a 9.9Mw hydro project at the Reykjanes geothermal operations. The company is also to use part of the funds to repay €52 million of its outstanding loans.
“We are pleased to complete this refinancing, keeping us on track for our planned hydro and geothermal growth in Iceland,” said Lynda Freeman, Altera’s CEO. “The new loan will also enable increased dividends to Alterra and HS Orka’s other shareholders beginning in 2019.”
The loan carries a 5-year term with the option of extending it up to 18 years subject to certain extension conditions.
Inergex takeover bid comes just days after ALTERRA POWER CORP (OTCMKTS:MGMXF) completed the acquisition of a Jawbone, a 40MW wind development project in Kern County California. The acquisition builds on a collaborative effort that began last year between the company and Jawbone Wind Energy LLC,
“We’re extremely pleased to acquire Jawbone, representing one of the few viable opportunities to build new wind generation in California. We expect to contract the facility over the next twelve months and begin delivering power in 2020. Our thanks go to the Rudnicks for entrusting their project to Alterra,” said CEO John Carson.
I have no positions in any of the stocks mentioned, and have no plans to initiate any positions within the next 72 hours. All information, including any data, is provided without any guarantees of accuracy.
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