The $1.1 billion acquisition of B.C.’s Alterra Power Corp. by Quebec’s Innergex Renewable Energy Inc. (TSX: INE) closed Tuesday, February 6.
Alterra, a renewable energy developer and operator, was co-founded by B.C. mine investor Ross Beaty, who owned 31% of Alterra, according to Michel Letellier, Innergex’s CEO.
But Beaty won’t be cashing out right away. Under the deal, Beaty’s Alterra shares will convert to a 6% to 7% share of Innergex stock and Beaty has agreed to a 12-month holding period, and will join Innergex’s board of directors.
When the deal was announced in early November 2017, Alterra’s shares shot up 55%, from $5.06 to $7.84. Innergex acquired Alterra for $8.25 per share.
The acquisition brings Innergex’s total installed power capacity to 1,609 megawatts.
Since Alterra owned power projects outside of Canada, including in the U.S. and Iceland, where it developed or owned geothermal projects, the acquisition allows Innergex to quickly expand its international footprint.
“We had announced about three years ago to make an effort go outside Canada,” Letellier told Business in Vancouver. “Not that we don’t like Canada – we still want to grow in Canada. It’s just the main market where we were active – Quebec, Ontario and B.C. – opportunity had slowed down over the last few years.
“We have come to a size where we can now focus our attention to some other transactions outside Canada.”
In recent years, Innergex has been focusing on new developments of renewable power in France, Chile, Peru.