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Market: TSX
Sector: Renewable Energy
EPIC: INE
Latest Price: 10.80  (1.08% Ascending)
52-week High: 10.85
52-week Low: 8.99
Market Cap: 877.85M
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Innergex Renewable Energy
www.innergex.com

Innergex Renewable Energy Inc. is a leading developer, owner and operator of run-of-river hydroelectric facilities and wind energy projects in North America. The Corporation's management team has been involved in the renewable power industry since 1990.

Full Innergex Renewable Energy profile here
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Innergex Renewable Energy buys more hydroelectric capacity with $185 million Cloudworks Energy deal

14th Feb 2011, 5:38 pm by Phil Cheng
Innergex is acquiring more renewable energy capacity through Cloudworks Energy Innergex is acquiring more renewable energy capacity through Cloudworks Energy

Innergex Renewable Energy (TSE:INE), an operator of hydroelectric facilities and wind energy projects in North America, said Monday it has agreed to acquire privately-held Cloudworks Energy in a stock and cash deal worth $185 million. 


Innergex will pay Cloudworks Energy shareholders $145.7 million in cash and $39.3 million in common shares, which will be issued through a private placement. 


To finance the cash portion of the deal, Innergex will issue 16.1 million subscription receipts at a price of $9.35 per receipt.  BMO Capital Markets and National Bank Financial have agreed to underwrite the deal on a bought-deal basis.  Up to $156 million can be raised if the underwriters excercise their over-allotment option. 


Shareholders of Vancouver-based Cloudworks are also entitled to receive additional performance-based payments. 


Cloudworks’ portfolio consists of a 50% interest in six hydroelectric facilities having a combined gross installed capacity of 150 MW; full ownership of 76 MW hydroelectric projects under development with 40-year power purchase agreements; and full ownership of hydroelectric projects in various stages of development with a potential total installed capacity of over 800 MW.


The six hydroelectric facilities, or The Harrison Operating Facilities as they are collectively called, have a total installed capacity of 150 MW.  All the power generated is sold to BC hydro aunder two 40-year purchasing power agreements.  The facilities are expected to generate about $47 million in revenues annually.  CC&L Infrastructure and Fengate Capital Management indirectly own the remaining 50% of these facilities. 


Meanwhile, the 76 MW hydroelectric projects are expected to generate about $35 million in annual revenues once the projects start operations in 2017. 


Innergex’s CEO, Michel Letellier, said the assets will help the company diversify its revenues and increase its installed capacity by as much as 23% to 401 MW from 326 MW. 


In addition to the $185 million purchase price, Innergex’s will also assume about $35 million in net debt. 


The deal, subject to regulatory approvals and other customary closing conditions, is expected to close around March 31.

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