(Reuters) - Innergex Renewable Energy said it will buy rival Alterra Power Corp in a deal valued at C$1.1 billion ($857.83 million)including debt as the power producer looks to diversify its energy portfolio.
Alterra shareholders will receive C$8.25 per Alterra share, payable in C$2.06 cash and 0.4172 of a common share of Innergex, the companies said in a joint release on Monday.
The deal represents a premium of 62.7 percent to Alterra’s last close of C$5.07 and will add to Innergex’s earnings after the completion of Alterra’s projects under construction, the companies said.
BMO Capital Markets was the financial adviser for Innergex and McCarthy Tétrault LLP its legal counsel.
National Bank Financial and Marathon Capital were financial advisers for Alterra and Borden Ladner Gervais LLP was its legal counsel.
Shares of Alterra were down 0.2 percent at C$5.06 and Innergex down 0.7 percent at C$14.73 in after-market trading.
($1 = 1.28 Canadian dollars)
Reporting by Anirban Paul in Bengaluru; Editing by Arun Koyyur