VANCOUVER, Feb. 13, 2012 /CNW/ - Alterra Power Corp. (TSX: AXY) announces that a group of Icelandic pension funds ("Jarðvarmi") that currently holds a 25% interest in HS Orka hf has delivered notice that it intends to increase its stake to 33.4% in accordance with the terms of the original purchase agreement entered into on June 1, 2011. Alterra Power's interest in HS Orka will be reduced from 75% to 66.6%.
To effect the change in ownership, Jarðvarmi will invest ISK 4.7B (USD 38.5 million) in HS Orka through the purchase of 878,205,943 treasury shares at a price of ISK 5.35 per share. This price represents a 15.6% increase over the original price paid by Jarðvarmi of ISK 4.63 per share for their initial 25% stake. These funds are expected to be used by HS Orka for the equity requirements for 80 MW of expansions which will increase the Reykjanes plant capacity from 100 MW to 180 MW. Closing is expected to occur before the end of February. Alterra Power was advised on the transaction by MP Bank.
About HS Orka
HS Orka is the largest privately owned energy company in Iceland, producing 9% of the country's power needs and 10% of the country's heating needs. Installed geothermal power capacity is 175 MW from the Svartsengi and Reykjanes power plants. In addition, HS Orka generates 150 MW of thermal energy for district heating. Expansions are planned that could increase HS Orka's geothermal power production capacity to 405 MW by 2016.
About Alterra Power Corp.
Alterra Power Corp is a leading global renewable energy company. We operate six power plants totaling 570 MW of capacity, including two geothermal facilities in Iceland, a geothermal plant in Nevada, British Columbia's largest run of river hydro facilities and the province's largest wind farm. Our 315 MW share of production capacity generates over 1,500 GWh of clean power annually. We have an extensive portfolio of exploration and development projects, a skilled international team of explorers, builders and operators as well as the strong financial capacity to support our aggressive growth plans.
Cautionary Note regarding Forward-Looking Statements and Information
This news release contains certain "forward-looking information" within the meaning of Canadian securities laws, which may include, but is not limited to, statements with respect to future events or future performance, the fulfillment of all conditions precedent to the obligation of the parties under the agreements, required consents and third party approvals. This news release also contains statements with respect to our plans to expand our operations, management's expectations regarding our growth, business prospects and opportunities and energy generation capacities. Such forward-looking information reflects management's current beliefs and is based on information currently available to management.
For further information:
Anders Kruus, Vice President, Corporate Relations
Alterra Power Corp.
Email: [email protected]