Carbon credit developer Econergy accepts Suez offer

The board of clean energy and carbon credit developer Econergy International Plc has accepted a takeover offer by Suez Energy South America (SESA), a unit of France’s Suez, that topped a rival bid by Trading Emissions Plc.

SESA said it would offer 45 pence per Econergy share, valuing the group at about 39 million pounds (US$77 million) — a 50 percent premium to the cash alternative of 30 pence per Econergy share offered by Trading Emissions. SESA’s offer includes loans of more than US$50 million. (HNN 6/16/08)

Trading Emissions said June 16 it would not raise its offer to buy Econergy. In May, Trading Emissions had announced an agreed 27 million pounds (US$52.5 million) offer for the Econergy, to develop clean energy projects in Latin America.

The U.S.-based Econergy has 40 clean energy projects under development throughout Latin America that might sell carbon credits under the United Nations-authorized Clean Development Mechanism program. It operates the 147-MW Corani hydroelectric project in Bolivia and has under construction the 19.89-MW Areia Branca hydro project in Brazil, three wind projects in Brazil and Costa Rica, and a coal-mine methane project in the United States.

In May, Econergy reported a 500 percent revenue increase in 2007 thanks to revenues from the Corani hydro project, which it acquired last year.

Econergy settles dispute over Brazil’s 20-MW Pipoca

Econergy also announced the conditional settlement of a lawsuit by Hydro Partners LLC seeking to force Econergy to consummate its purchase of the 20-MW Pipoca hydroelectric project in Brazil.

Econergy and its affiliates agreed in 2006 to acquire at least 85 percent of the Areia Branca project and 45 percent of Pipoca. (HNN 9/6/06)

However, Econergy declined to close the Pipoca deal, saying a number of conditions precedent to closing, including obtaining necessary licenses, had not occurred despite multiple deadline extensions from March 2007 to March 2008.

Hydro Parters filed action in March seeking to force closure.

Econergy announced June 26 that the parties agreed to a conditional settlement, releasing all claims by Hydro Partners, conditional upon sale of the Pipoca project to a third party. Econergy said Hydro Partners was in advanced stages of that transaction.

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