Photographer: Chris Ratcliffe/Bloomberg

China Three Gorges, SDIC Among Bidders for Northland Power

Updated on
  • Bids were due Dec. 2 for $2.8 billion Canadian power producer
  • Renewable energy producer launched strategic review in July

China Three Gorges Corp. and SDIC Power Holdings Co. are among companies bidding for Canadian renewable energy producer Northland Power Inc., according to people familiar with the matter.

First-round bids for the Toronto-based company, which had a market value of C$3.7 billion ($2.8 billion) at the close Friday, were due Dec. 2, said the people, who asked not to be identified because the matter is private. Some Canadian pension funds had a look at the company but balked at its valuation ahead of the bid deadline, the people said.

Northland Power rose 2.5 percent to C$22.20 at 9:39 a.m. Monday in Toronto, giving it a market value of C$3.8 billion.

Northland Power announced in July that it had commenced a review of strategic alternatives. A spokesman for the company declined further comment Friday, in an e-mailed statement. Representatives for Three Gorges and SDIC didn’t immediately respond to phone calls and e-mails seeking comment.

Canadian Imperial Bank of Commerce and JPMorgan Chase & Co. are working on Northland’s review.

Northland owns or has investments in power generation facilities in Canada, the U.S. and Germany. Its facilities produce electricity from clean natural gas and other renewable sources, including solar, wind and biomass.

Chinese President Xi Jinping has sought to cut pollution and spur investment in non-fossil fuels in the world’s second-largest economy. 

State-owned Three Gorges, operator of the world’s biggest hydroelectric plant, agreed to buy control of German wind farm operator WindMW GmbH from Blackstone Group LP in June. That deal valued the target at about 1.7 billion euros ($1.8 billion) including debt, people familiar with the matter said at the time. 

Beijing-based SDIC Power acquired Repsol SA’s offshore wind-energy business for 238 million euros in May, according to data compiled by Bloomberg.

— With assistance by Aibing Guo

(Updates with share price in third paragraph.)
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