Alterra Power MGMXD

Blue Lagoon Sales Process Terminated.

[R_J_]

Alterra Power Announces Termination of Blue Lagoon Sales Process
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Aug. 3, 2017 /CNW/ - Alterra Power Corp. (TSX: AXY) announces that its subsidiary, HS Orka hf, has ended the process regarding the potential sale of HS Orka's 30% ownership interest in the Blue Lagoon tourist resort.
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Alterra had previously announced that the subsidiary was considering strategic alternatives for the ownership stake, up to and including a full sale.
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During the sales process, several viable offers were received and HS Orka entered into an exclusivity agreement with a preferred bidder who valued the stake in excess of €90 million (multiple bids were received with valuations above €90 million).
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Although Alterra was prepared to sell under this preferred offer, Alterra's partner at HS Orka, Jarvarmi slhf, whose consent was required, decided against selling the stake at this time.
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HS Orka may revisit the process at a later date.
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https://www.alterrapower.ca/news/Press-Release/News-Releases/News-Releases-Details/2017/Alterra-Power-Announces-Termination-of-Blue-Lagoon-Sales-Process/default.aspx
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RJ

[keubiko]

The read-thru value on this is about $73 million net to AXY (CAD).  Most analysts were in the $50-$60M range. The partner is the Icelandic pension fund - I suspect they wanted to hang onto it for sovereign reasons but perhaps more logically the asset is peforming exceptionally well and is in the middle of a big expansion so perhaps they want to sell later. Or perhaps they didn't like who