INNERGEX TO ACQUIRE REMAINING INTERESTS
Agreement to acquire remaining 30.45% minority interest in 16 wind facilities already owned by Innergex
A CAN$96.4 million transaction to increase Innergex's net installed capacity by 98.7 MW in France
A new milestone to unlock the full value of our portfolio in France in the context of rising energy prices
LONGUEUIL, QC, Sept. 28, 2022 /CNW Telbec/ - Innergex Renewable Energy Inc. (TSX: INE) ("Innergex" or the "Corporation") is pleased to announce that it has entered into an agreement to acquire the remaining 30.45% minority interest in its wind portfolio of 16 assets in France, of which Innergex currently owns the majority interests, for a total consideration of CAN$96.4 million.
"This transaction is part of a global strategy to capitalize on rising energy prices and growing demand in the current energy environment in France," said Michel Letellier, President and Chief Executive Officer of Innergex. "By increasing the scale of our business and developing a stronger presence in France, it paves the way for future growth and value creation in the country."
Description of the assets
The table below outlines Innergex's wind portfolio of operating facilities in France. Upon completion of the acquisition, Innergex will have 100% ownership of these assets.
Tables are not compatible with the Apple News Format. Click here to see the full release with tables.
The 16 assets, on a consolidated basis, are expected to generate annual revenues of approximately €75.8 million (CAN$100.0 million) in 2023, while operating, general and administrative expenses are expected to reach €18.6 million (CAN$24.5 million) during the same period. As of the date of this press release, the total outstanding principal of the long-term non-recourse loans on the portfolio totalled €312.6 million (CAN$412.2 million), cash and cash equivalents totalled approximately €39.5 million (CAN$52.0 million), and cash held in reserves totalled approximately €7.7 million (CAN$10.2 million).
This transaction follows previous announcements aimed at taking full advantage of the current favourable energy price environment in France. On April 29, 2022, Innergex entered into three power purchase agreements for its Antoign, Porcien and Vallottes wind facilities to extend the contract period of the facilities to December 31, 2025.
The total net purchase price of CAN$96.4 million will be financed mainly from Innergex's revolving credit facilities, the cash held in the portfolio's special purpose vehicles, and through the potential partial monetization of the Euro/CAD foreign exchange forward contracts outstanding, as detailed below: