{"id":385863,"date":"2020-11-20T07:03:37","date_gmt":"2020-11-20T12:03:37","guid":{"rendered":"http:\/\/www.marketnewsdesk.com\/?p=385863"},"modified":"2020-11-20T07:03:37","modified_gmt":"2020-11-20T12:03:37","slug":"acquisition-of-cpdqs-49-equity-stake-in-3-wind-farms","status":"publish","type":"post","link":"https:\/\/www.marketnewsdesk.com\/index.php\/acquisition-of-cpdqs-49-equity-stake-in-3-wind-farms\/","title":{"rendered":"Acquisition of CPDQ’s 49% equity stake in 3 wind farms"},"content":{"rendered":"
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PR Newswire<\/p>\n<\/p><\/div>\n

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\n Boralex becomes the sole owner of 3 Quebec wind farms, with a 296 MW installed capacity<\/b>\n <\/p>\n

\n MONTREAL<\/span>, Nov. 20, 2020<\/span> \/PRNewswire\/ – Boralex Inc. (“Boralex” or the “Corporation”) (TSX: BLX) is pleased to announce that it has entered into a definitive agreement to acquire the full 49% equity stake held by the Caisse de d\u00e9p\u00f4t et placement du Qu\u00e9bec (“CDPQ”) in 3 wind farms in Quebec<\/span>, already 51% owned by Boralex. CDPQ’s 49% equity stake represents 145 MW net installed capacity and the three wind farms represent a total capacity of 296\u00a0MW. Located in the Avignon RCM in Gasp\u00e9sie and the Appalaches RCM in eastern Quebec<\/span>, these farms are equipped with Enercon turbines and benefit from long-term power purchase agreements (“PPAs”) with Hydro-Qu\u00e9bec Distribution, expiring between 2032 and 2033 with a weighted average remaining contract duration of nearly 12.5\u00a0years.<\/p>\n

“We’re very pleased to announce our acquisition of CDPQ’s stake in high-quality wind farms that we already own 51% of and have managed for over two years following our acquisition of Invenergy’s stakes in these assets. Operating these wind farms provided the expected synergies and has yielded results 10% better than we had expected in 2019”, says Patrick Lemaire<\/span>, Boralex’s President and CEO.<\/p>\n

“This transaction strengthens our position in the wind industry in Canada<\/span> and is perfectly aligned with the growth orientation of our strategic plan. Acquiring CDPQ’s stake will add significant cash flow for the coming years and a positive contribution to the company’s discretionary cash flow per share in the first year after the transaction closes. We also expect to generate additional operational and financial synergies in the coming years,” adds Patrick Decostre, Boralex’s Vice President and Chief Operating Officer.<\/p>\n

As part of the acquisition, Boralex will pay a cash consideration of $121.5 million<\/span> to CDPQ on closing, which may be supplemented by a conditional consideration of up to $4 million<\/span> subject to the settlement of certain future conditions that need to be met. The closing is expected to take place at the end of November 2020<\/span>, subject to standard closing conditions. Following this transaction, Boralex’s installed capacity will be 2,212 MW.<\/p>\n

Highlights<\/p>\n