Please note that this release replaces c8978 issued at 09:00e today.
Corrected copy follows:
INNERGEX COMPLETES THE ACQUISITION OF CLOUDWORKS ENERGY INC. AND THE
EXCHANGE OF THE SUBSCRIPTION RECEIPTS FOR COMMON SHARES
LONGUEUIL, QC, April 4 /CNW/ - Innergex Renewable Energy Inc. (TSX: INE)
("Innergex") is pleased to announce that it has completed the
acquisition of Cloudworks Energy Inc. ("Cloudworks"), as announced on
February 14, 2011. Founded in 2000, Cloudworks is an independent power
producer headquartered in Vancouver, British Columbia, which currently
employs 30 people. Through this acquisition, Innergex has acquired
attractive assets with long term power purchase agreements which it
believes will provide it with cost synergies and operational
Additional cash flows generated from the assets acquired are expected to
further increase Innergex's liquidity and flexibility to fund the
development of future projects. By adding the recently commissioned
low-risk hydroelectric facilities to its portfolio of assets, Innergex
believes it is improving the stability of its cash flows and the
sustainability of its dividend. Also, the transaction is expected to be
accretive to Innergex's free cash flow per share upon commissioning of
three run-of-river hydroelectric projects under development with
40-year power purchase agreements with a potential installed capacity
of 76 MW. Furthermore, through the transaction, Innergex is
significantly expanding its footprint in British Columbia.
Cloudworks' portfolio of assets consists of an interest of 50.01% in six
run-of-river hydroelectric facilities having a combined gross installed
capacity of 150 MW; full ownership of 76 MW of run-of-river
hydroelectric projects under development with 40-year power purchase
agreements; and full ownership of run-of-river hydroelectric projects
in various stages of development having a potential aggregate installed
capacity of over 800 MW.
Further to the applicable closing adjustments, the aggregate
consideration for the acquisition of Cloudworks was approximately $187
million, approximately $39 million of which was paid by the issuance,
by way of private placement, of common shares of Innergex to the
shareholders of Cloudworks and the balance was paid in cash (subject to
a customary holdback). In addition, the shareholders of Cloudworks are
entitled to receive certain conditional deferred payments based on the
future performance of the Cloudworks portfolio of assets which
effectively provide for a potential sharing of the value created if the
Cloudworks assets perform better than expected and result in
incremental accretion to Innergex, net of these payments.
Exchange of Subscription Receipts
With today's closing of the Transaction, the escrow release conditions
for the subscription receipts of Innergex have been met. The transfer
register for the subscription receipts will close today at 5:00 p.m.
(local time in Montreal) and the subscription receipts will
automatically be exchanged on a one-to-one basis for common shares of
Innergex through the facilities of CDS Clearing and Depositary Services
Inc. In addition, a dividend equivalent payment of $0.145 per
subscription receipt will also be payable to such holders of record of
subscription receipts as a result of Innergex having declared a
dividend of $0.145 per common shares which is payable to holders of
record of common shares on March 31, 2011.
Innergex Renewable Energy Inc. is a leading developer, owner and operator of run-of-river
hydroelectric facilities and wind energy projects in North America, and
a developer of solar photovoltaic installations. Innergex's management
team has been involved in the renewable power industry since 1990.
With the acquisition of Cloudworks, Innergex owns a portfolio of
projects which consists of: i) interests in 23 operating facilities
with an aggregate net installed capacity of 401 MW; ii) interests in 10
projects under development or under construction with an aggregate net
installed capacity of 279 MW for which power purchase agreements have
been secured; and iii) prospective projects of more than 2,800 MW
This press release contains forward-looking information within the
meaning of applicable securities laws. All information and statements
other than statements of historical facts contained in this press
release are forward-looking information. Such statements and
information may be identified by looking for words such as "about",
"approximately", "may", "believes", "expects", "will", "intend",
"should", "plan", "predict", "potential", "project", "anticipate",
"estimate", "continue" or similar words or the negative thereof or
other comparable terminology. Such forward-looking information
includes, without limitation, statements with respect to: the benefits
which may accrue to Innergex and its shareholders as a result of the
Transaction, cash flows, dividends, power generation, growth prospects,
business strategy and plans, and objectives of or involving Innergex.
The forward-looking information is based on certain key expectations
and assumptions made by Innergex. Although Innergex believes that the
expectations and assumptions on which such forward-looking information
is based are reasonable, undue reliance should not be placed on the
forward-looking information since no assurance can be given that they
will prove to be correct. For additional information with respect to
risks and uncertainties, refer to the Annual Information Form of
Innergex filed by Innergex with the Canadian securities commissions.
Unless required to do so pursuant to applicable securities legislation,
Innergex assumes no obligation as to updating or revision of
forward-looking statements as a result of new information. Actual
results could differ materially from those currently anticipated due to
a number of factors and risks.
SOURCE INNERGEX RENEWABLE ENERGY INC.
For further information:
Mr. Jean Trudel, MBA
Vice President - Finance and Investor Relations
Innergex Renewable Energy Inc.
Tel: (450) 928-2550, ext. 252
Ms. Edith Ducharme, LL.L.
Director - Financial Communications and Investor Relations
Innergex Renewable Energy Inc.
Tel: (450) 928-2550, ext. 222
Innergex website: www.innergex.com