International Power Canada acquires AIM PowerGen from Renewable Energy Generation

Renewable Energy is a UK-based developer, owner and operator of renewable energy projects, while AIM PowerGen is a Canada-based wind power developer, owner and operator.

International Power has entered into an agreement to acquire the entire issued share capital of AIM PowerGen from Renewable Energy for a cash consideration of CAD119 million ($109.61 million). The cash consideration for the transaction will be funded from existing cash resources.

Lexicon Partners Limited is acting as financial advisor to Renewable Energy on the transaction.

Deal Value (US$ Million) 109.61
Deal Type Acquisition
Sub-Category 100% Acquisition
Deal Status Completed: 2009-10-21

Deal Participants

Target (Company) AIM PowerGen Corporation
Acquirer (Company) International Power Canada, Inc.
Vendor (Company) Renewable Energy Generation, Ltd.

The acquisition will allow International Power to add a wind energy portfolio of operational and development assets to its North American business.

International Power plc is a leading independent electricity generating company with 32,949 MW gross (21,239 MW net) in operation and 3,330 MW gross (1,028 MW net) under construction. International Power has power plants in operation or under construction in Australia, the United States of America, the United Kingdom, Belgium, Canada, the Czech Republic, France, Germany, Italy, the Netherlands, Portugal, Spain, Turkey, Bahrain, Oman, Qatar, Saudi Arabia, the UAE, Indonesia, Pakistan, Puerto Rico and Thailand. International Power is listed on the London Stock Exchange with ticker symbol IPR.

AIM PowerGen Corporation is one of Canada’s largest independent wind farm developers, it has three operational wind farms in Ontario, with many other projects in development in Ontario, Newfoundland and Western Canada. AIM is also developing a wind farm in the Dominican Republic.

In Ontario, 40 Mega Watts (MW) of wind farms are in operation in addition to the Harrow project, which has already commenced construction and is on plan for completion in the first half of 2010. AIM also has an advanced development pipeline of 1,200MW in Ontario and across Canada.

Canada has a strong commitment to renewable energy generation, with markets such as Ontario providing a supportive regulatory environment, including 20-year off-take contracts with feed-in tariffs.