Emera Inc. has acquired, on a private-placement basis, approximately 6.9 million subscription receipts of Algonquin Power & Utilities Corp. at a purchase price of C$5.37 per receipt.
The receipts were issued in connection with the previously announced April agreement between Emera, Algonquin and First Wind Holdings LLC to jointly construct, own and operate wind energy projects in the northeastern U.S.
First Wind has a 370 MW portfolio of wind projects in the northeastern U.S., including five operating projects and two projects near operation. Under the April agreement, these assets will become part of an operating company of which First Wind will own 51%. Emera and Algonquin intend to enter into a separate joint venture, Northeast Wind, which will own the remaining 49% of the operating company. Emera will own 75% of Northeast Wind, and Algonquin will own the balance.
Northeast Wind will invest a total of $333 million to acquire its 49% interest in the operating company. The transfer of the First Wind projects and related matters requires certain U.S. federal and state regulatory approvals, among other approvals. The transaction is expected to be completed in the fourth quarter of this year.
Algonquin's investment in Northeast Wind will be funded, in part, through the net proceeds of the issuance of the receipts.