Iceland to Buy Resources Utilized by Alterra, Visir Reports

Iceland’s Treasury is seeking authorization from the country’s legislature to purchase areas owned by Reykjanesbaer municipality that are currently rented out to Alterra Power Corp., the newspaper Visir reported.

The transaction is part of the government’s effort to unwind Alterra’s ownership of geothermal utility HS Orka hf, Visir said, citing Bjorn Valur Gislason, the chairman of the parliament’s budgetary committee.

Earlier this year, Alterra, a Vancouver-based geothermal power developer, agreed to sell a quarter of its 98.5 percent stake in HS Orka to a group of Icelandic pension funds. The sale came less than a year after the company bought a majority stake in a deal that spurred a national debate about foreign ownership and a government investigation. Singer Bjork Gudmundsdottir has led a campaign to put foreign energy takeovers to referendums if enough people are opposed.

To contact the reporter on this story: Omar R. Valdimarsson in Reykjavik valdimarsson@bloomberg.net

To contact the editor responsible for this story: Tasneem Brogger at tbrogger@bloomberg.net

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