Canadian Hydro Developers Inc., a Calgary, Alberta-headquartered developer of renewable energy projects, has agreed to acquire GW Power Corp. (GWP), an Alberta-based wind farm developer and owner, for $87 million. GWP currently owns 50% of the 70.5 MW Soderglen Wind Plant located in southern Alberta that became operational in September of 2006.
"The acquisition of GWP provides Canadian Hydro with an interest in a brand-new wind plant that is highly complementary to our asset base and operating platform in Alberta, as well as solid wind prospects in Ontario and Alberta for future growth," says John Keating, Canadian Hydro's chief executive officer.
The offer is expected to be mailed to GWP shareholders early February, the companies say. GWP's board of directors has unanimously approved the acquisition and, based on Canaccord Capital Corp.'s financial advice, the agreement is deemed fair. Therefore, the acquisition is expected to finalize at the end of March.