Apr. 4, 2011 (Canada NewsWire Group) --
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 efficiencies.
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 (net).
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.
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