in News Departments > New & Noteworthy
print the content item

Sprott Power Corp., a Canada-based developer, owner and operator of renewable energy projects, has announced that it will acquire Canadian wind energy developer Shear Wind.

Pursuant to the agreement, Sprott Power will acquire each Shear Wind share for a cash consideration of $0.2213, which represents a premium to the 20-day volume-weighted trading price of approximately 20%, corresponding to an aggregate purchase price of approximately $33 million.

The acquisition places a value on the Shear Wind enterprise of approximately $79 million. In addition to the approximately $33 million consideration for the Shear Wind shares, Sprott Power is assuming approximately $51 million in debt (its share of Glen Dhu LP's long-term debt), offset by approximately $5 million in cash-on-hand following certain adjustments.

Shear Wind owns a 63.7 MW portfolio of operating and development assets in Nova Scotia, Canada. This portfolio includes a 51% interest in Glen Dhu Wind Energy LP, which operates the Glen Dhu wind farm and has a 20-year power purchase agreement (PPA) with NSPI, and a 100% interest in Fitzpatrick Mountain Wind Energy Inc., which operates the Fitzpatrick Mountain wind farm and has a 15-year PPA with NSPI.

The development assets portfolio comprises wind projects in various stages of development that have a potential aggregate installed capacity of over 860 MW.

In connection with the acquisition, Sprott Power has entered into working agreements with GAHC and Wind Canada Investments, pursuant to which, following the closing of the acquisition, Sprott Power and GAHC will complete an operating joint venture for the operating facilities, and Sprott Power and Wind Canada Investments will complete a development joint venture for the prospective projects. GAHC currently directly owns the remaining 49% of Glen Dhu LP.

Immediately following the acquisition, GAHC and Wind Canada Investments will make a cash payment of approximately $1.8 million to Sprott Power to increase GAHC's ownership of Glen Dhu LP by 2% (to a total of 51%) and to purchase a 50% interest in Fitzpatrick. This will result in Sprott Power’s holding a 49% ownership interest in Glen Dhu LP and a 50% ownership interest in Fitzpatrick.

In addition, Sprott Power, indirectly through SP Development Limited Partnership, and Wind Canada Investments will enter into a new 50/50 joint development limited partnership for the prospective projects.

Sprott Power was advised by Canaccord Genuity Corp. and TD Securities Inc., and legal advice was provided by Cassels Brock & Blackwell LLP. Shear Wind was advised by Stikeman Elliott LLP and McInnes Cooper, and a fairness opinion was provided to its special committee and board by PricewaterhouseCoopers Canada LLP.

The acquisition is expected to proceed as a plan of arrangement under the Canada Business Corporations Act and to close in mid-October. The acquisition has been unanimously approved by the board of directors of Sprott Power and Shear Wind, and is subject to approval by Shear Wind shareholders, including approval of the minority shareholders.

More information on the terms of the deal is available here.

Mortenson Construction_id2024

Trachte Inc._id1770
Latest Top Stories

Canadian Wind Industry Urges For More Federal Support

The Canadian Wind Energy Association says the country's federal government, once a big industry supporter, should again back wind power.


Wind And Solar Helped California Grid During Challenging Summer

According to the California Independent System Operator, the state suffered from heat waves and drought this year, and wind power played a "significant role" in keeping the lights on.


Recapping The Wind Industry's Third-Quarter Deals

Mercom Capital Group recaps investment and merger and acquisition activity during July, August and September.


Yearly Installed Capacity Figures Already Beat 2013 Numbers, More Wind On The Way: AWEA

While the American Wind Energy Association (AWEA) lobbies Congress to extend the production tax credit, the association notes wind projects now under construction signal a vibrant 2015.


Yahoo Inks Contract To Buy Kansas Wind Power

The Internet company plans to log in to the Alexander wind project, which is being built by community developer OwnEnergy.

Renewable NRG_id1934
Hybrid Energy Innovations 2015
BG 2015DblBox_id2032