I Squared Capital to acquire Atlantic Power Corporation
The two firms entered into a definitive agreement under which Atlantic Power’s outstanding common shares and convertible debentures, and the outstanding preferred shares and medium-term notes of certain of its subsidiaries, will be acquired.
Atlantic Power has several biomass plants in the US and Canada, including the Calstock facility in Ontario, the Cadillac plant in Michigan, and the Williams Lake facility in British Columbia.
“We are pleased to announce this transaction with I Squared Capital,” said Kevin T Howell, chairman of Atlantic Power’s board of directors.
“The independent directors of the board, with the assistance of our financial and legal advisors, carefully analysed I Squared Capital’s offer, and after extensive negotiation and thorough consideration, concluded that the agreement is in the best interests of Atlantic Power.”
James J Moore, Jr, president and CEO of Atlantic Power, said: “As our fellow shareholders know, the future value of our shares is highly dependent on power prices and re-contracting outcomes for several major power purchase agreements that are expiring in the next three-to-five years.
“The acquisition of our shares for cash would remove this uncertainty for investors and provide immediate and significant cash value. We have carefully considered the offer and we encourage our fellow shareholders to join management and the board in voting to approve this transaction.”