Toronto-based Brookfield Renewable Power Inc.'s (BRPI) board has approved the sale to Great Lakes Hydro Income Fund of substantially all of its Canadian renewable power generation business not already owned by the fund.
The projects include 15 hydroelectric plants with a total installed capacity of 387 MW and a soon-to-be-constructed wind power project. BRPI will also increase the price it currently pays for power generation from the fund's existing Lievre and Mississagi power assets to reflect increases in power prices since the contracts were originally entered into. After completing the t`ransaction, BRPI will continue to own 50% of the fund.
As part of a strategic repositioning approved by its board, Brookfield will invest in Canadian contracted renewable power generating assets through the fund as its exclusive platform for such investments. Brookfield and the fund will maintain the fund's current focus on producing stable cashflows from high-quality, long-life renewable power assets.
The total consideration payable by the fund to BRPI in connection with the transaction is C$945 million.
The transaction is subject to regulatory and unit-holder approval and is expected to close in the third quarter of this year.
SOURCE: Brookfield Renewable Power Inc.
