LONGUEUIL, QUE.—Shares of Innergex Renewable Energy Inc. fell in trading Tuesday after the company announced a friendly deal to acquire Alterra Power Corp. worth $ 1.1 billion, including debt.
Innergex shares were down 71 cents or about five per cent at $ 14.02 in late-morning trading, while Alterra was up $ 2.77 or about 55 per cent at $ 7.83 on the Toronto Stock Exchange.
The green energy companies announced Monday afternoon that Innergex would acquire Alterra for $ 8.25 per share under a deal that will see shareholders receive 25 per cent of the purchase price in cash and 75 per cent in shares of Innergex.
Alterra shareholders will hold a 19 per cent stake in the combined company and one member of the current Alterra board will join the Innergex board once the transaction is completed.
The transaction requires approval by a two-thirds majority vote by Alterra shareholders at a meeting that is expected to be held in December.
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In addition, the deal is subject to court and certain regulatory approvals in Canada and U.S., key third-party consents and other customary closing conditions.