Iceland Pensions to Increase Stake in HS Orka, Diluting Alterra
Alterra Power Corp. (AXY), a renewable energy developer, said a group of Icelandic pension funds will increase their stake in the geothermal energy company HS Orka hf to 33.4 percent from 25 percent.
The pension funds, Jarovarmi, will pay 4.7 billion kronur ($38.3 million) for 878 million treasury shares, Vancouver-based Alterra said today in a statement. The deal will reduce Alterra’s holding in HS Orka to 66.6 percent from 75 percent, according to the statement.
HS Orka will use the funds from the sale to finance the equity component of an 80-megawatt expansion of its 100-megawatt Reykjanes geothermal power plant. The pension funds had the option to increase their stake in HS Orka after their initial 8.06 billion kronur investment in April.
MP Bank advised Alterra on the transaction, which is expected to close by the end of February.
To contact the reporter on this story: Andrew Herndon in San Francisco at aherndon2@bloomberg.net
To contact the editor responsible for this story: Reed Landberg at landberg@bloomberg.net
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