Boralex Inc. announced that it has entered into binding agreements with Enercon Canada Inc. to acquire all of its economic interest in the 230-MW Niagara Region Wind Farm (NRWF). The agreement is for a total cash consideration of $238.5 million, subject to adjustments under the acquisition agreements.
NRWF extends across the Regional Municipality of Niagara, the Township of West Lincoln, the Town of Wainfleet, and Haldimand County in Ontario. It was was commissioned on November 2, 2016, and comprises 77 Enercon E-101 turbines.
The 230-MW wind farm created 700 new jobs during project development and 100 permanent jobs for its long-term operations and maintenance.
“This Transaction is a great opportunity to further expand and diversify Boralex’s asset portfolio with a high-quality wind farm that will provide a stable and recurring cash flow stream,” said Patrick Lemaire, President and CEO of Boralex. “Moreover, the Transaction is expected to create value for our shareholders with double-digit accretion to Boralex’s 2017 discretionary cash flow per share.”
Upon the closing of the Transaction, NRWF will benefit from a 20-year feed-in tariff contract with the province-owned IESO under attractive terms, which provide a predictable and recurring revenue and cash flow stream.
“Today, we remain ideally positioned to keep moving forward with our growth strategy focused on developing and acquiring assets associated with long-term power purchase agreements and are pleased to announce the upward revision of our 2020 contracted capacity target from 1,650 to 2,000 MW,” added Lemaire.
“Considering the Corporation’s strong financial position and positive outlook for the long-term, we are also very pleased to announce an increase in our annual dividend to $0.60 per share, effective upon closing of the Transaction,” he said.
Boralex has been committed to building on its significant presence and experience in Canada, including through acquisitions that are compatible with its position and goals in the market.
The acquisition of Enercon’s economic interest in NRWF will add 230 MW of clean energy to Boralex’s asset portfolio, increasing the Corporation’s net installed capacity by 21% to 1,338 MW. NRWF will become Boralex’s largest asset and will contribute to further extending its portfolio’s weighted average PPA term to 16 years.
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Filed Under: News, Projects
