Capstone Infrastructure Corp., a Canadian power producer, agreed to acquire Renewable Energy Developers Inc. for C$70 million ($66.6 million) to expand its wind operations.
Renewable Energy shareholders will receive 0.26 Capstone common shares and 0.1 Canadian cent for each share owned, worth C$1.01 a share, Capstone said today in a statement. That’s a 10.8 percent premium over the 20-day weighted average of Renewable Energy’s shares. Both companies are based in Toronto.
The deal gives Capstone 95 megawatts of wind farms in operation in Nova Scotia and Ontario, and access to 35 megawatts of wind projects under development. The deal is expected to close in September.
Capstone also will have the option to acquire another 44 megawatts of wind power under development for C$60 million in equity funding.
When complete, Capstone will have about 550 megawatts of operating and contracted power assets in Canada. The company also has solar, biomass and hydropower plants, and one natural gas cogeneration facility. Capstone shareholders will own about 80 percent of the combined company and Renewable Energy shareholders about 20 percent.