Canada’s Algonquin Power offers to acquire Clean Power

Canadian hydro owner Algonquin Power Income Fund has launched a takeover bid for Clean Power Income Fund, whose portfolio of renewable resources includes four hydroelectric projects.

Algonquin Power Income, which owns 47 hydroelectric projects and other energy facilities across North America, said it directed affiliate Algonquin Power Trust to offer to acquire all outstanding convertible debentures issued by Clean Power Income that are not already owned by Algonquin. Algonquin said the transaction is valued at C$57.5 million (US$49 million).

Ontario-based Clean Power Income Fund has 44 power projects in Canada and the U.S. totaling 450 MW of hydropower, landfill gas, wood waste, and wind generation.

Its hydro projects, which total 35.7 MW, include two in British Columbia, 3-MW Hluey Lakes and 16-MW Sechelt, and two in Ontario, 13.5-MW Wawatay and 3.2-MW Dryden, which includes the Wainwright, Eagle River, and McKenzie Falls developments.

Algonquin said the board of Clean Power Income affiliate Clean Power Operating Trust determined the offer is in the best interest of Clean Power Income shareholders and agreed to support the offer.

Algonquin said the offer is to be mailed to Clean Power Income shareholders by March 23. It is conditional on agreement by the holders of at least 66 percent of outstanding shares.

As part of the agreement, Clean Power Income retained the right to solicit alternative proposals from third parties during the period the offer is open.

Algonquin reports strong 2006 results

Algonquin Power Income Fund reported revenue for 2006 grew to C$201.4 million (US$171.8 million), compared to C$179.3 million (US$152.9 million) in 2005, a 12.3 percent increase. In the fourth quarter of 2006, revenue grew to C$53.7 million (US$45.8 million), compared to C$50.9 million (US$43.4 million).

Algonquin said the increase primarily was due to increased energy generated from improved hydrology for the hydroelectric division, the acquisition of the St. Leon wind energy facility, and continued growth of the infrastructure division.

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