Shares in Vancouver’s Alterra Power Corp. (TSX:AXY) spiked a whopping 55%, from $5.06 to $7.84 per share, October 31, while shares in Quebec’s Innergex Renewable Energy Inc. (TSX:INE) dropped 4%, following the announcement that the latter is buying the former.
Innergex has made an offer to buy the Vancouver renewable energy company co-founded by B.C. mining magnate Ross Beaty for $1.1 billion.
As part of the sale, Alterra shareholders will receive $8.25 per share in cash – a 58% premium on a 20-day average price and one Alterra board member will join Innergex’s board of directors.
The transaction must be approved by 66% of Alterra shareholders at a special shareholder meeting, to be held sometime in December.
Alterra was formed in 2011 through the merging of two B.C. renewable energy companies – Plutonic Power and Magma Energy Corp. Beaty was the founder of Magma.
Alterra is a developer and owner of renewable energy projects, including geothermal projects in Iceland, run-of-river projects in B.C. and wind and solar plants in the U.S. and B.C.
Innergex is headquartered in Quebec and is already Canada’s largest independent renewable energy company by market cap. The merger will add eight operating renewable energy plants to Innergex’s portfolio of wind, solar, and hydro projects, as well as three that are under construction.
Innergex owns or is developing 54 renewable energy projects in Canada, the U.S. and France.