The merger deal involves the Fund acquiring INE through a reverse takeover, whereby the Fund agrees to pay a consideration valued at $7.00 per share of INE, representing an exchange ratio of approximately 0.685 Fund unit per INE share, based on a deemed unit price of $10.22. The Combination will be structured as a reverse take-over in order to effect the conversion of the Fund to a corporation.
The unitholders of the Fund will exchange their units for shares of INE on the basis of an exchange ratio of 1.460 shares for each unit. Upon completion of the Combination, the current unitholders of the Fund (other than INE) will hold a 61% interest in Combined Innergex while the current shareholders of INE will hold the remaining 39% interest.
The new combined Innergex will own 326MW of installed capacity with an additional 128MW coming online over the next two years. Of this, 73% will come from hydro and 27% from wind.
