International Power PLC, an electricity generating company based in London, plans to acquire Canada-based wind farm developer AIM PowerGen Corp. from Renewable Energy Generation Ltd. for an enterprise value of C$189 million, with a total cash consideration of C$119 million.
The AIM portfolio is concentrated in Ontario, with 40 MW of wind farms in operation and 40 MW under construction. The construction cost of this 40 MW project is expected to be an additional C$52 million, which will be funded from a credit-approved project finance facility.
In addition, AIM has an advanced development pipeline of 1,200 MW in Ontario and elsewhere in Canada.
‘This acquisition adds a high-quality wind portfolio of operational and development assets, with an experienced development team, to our North American business,’ says Philip Cox, CEO of International Power.
The cash consideration will be funded from existing cash resources of International Power. The acquisition is expected to be completed by the end of the year and is subject to the approval of the shareholders of Renewable Energy Generation Ltd.
SOURCE: International Power PLC