Innergex shares fall after announcing deal to buy Alterra Power for $1.1B

LONGUEUIL, Que. _ Shares of Innergex Renewable Energy Inc. fell in trading Tuesday after the company announced a friendly deal to acquire Alterra Power Corp. worth $1.1 billion, including debt.

Innergex shares (TSX:INE) were down 71 cents or about five per cent at $14.02 in late-morning trading, while Alterra (TSX:AXY) was up $2.77 or about 55 per cent at $7.83 on the Toronto Stock Exchange.

The green energy companies announced Monday afternoon that Innergex would acquire Alterra for $8.25 per share under a deal that will see shareholders receive 25 per cent of the purchase price in cash and 75 per cent in shares of Innergex.

Alterra shareholders will hold a 19 per cent stake in the combined company and one member of the current Alterra board will join the Innergex board once the transaction is completed.

The transaction requires approval by a two-thirds majority vote by Alterra shareholders at a meeting that is expected to be held in December.

In addition, the deal is subject to court and certain regulatory approvals in Canada and U.S., key third-party consents and other customary closing conditions.