Finavera in discussions over company sale

CANADA: Vancouver-based Finavera Wind Energy is in discussions with three potential buyers for the company and its assets after a deal to sell a 77MW wind project in British Columbia fell through.

Wildmare wind farm... Innergex deal fell through
Wildmare wind farm... Innergex deal fell through

"Finavera intends to move expeditiously to explore transaction proposals and consummate a transaction in the near term," says a company statement.

The company has appointed Capital West Partners, an experienced M&A firm, to review offers. Finavera’s main assets include four wind projects totalling 301.6MW in north-eastern British Columbia that have 25-year power purchase agreements (PPAs) with BC Hydro.

The company said that since winning the PPAs in 2010, it has "dealt with adverse market conditions and short term hedge funds that have punitively sold stock against the interest of the long term shareholder."

As a result, its current market value of about C$12.5 million is significantly less than the C$2.5 billion value of the power contracts.

The company had announced an agreement with Quebec’s Innergex Renewable Energy in July to sell its Wildmare wind project for C$22 million. However, Innergex announced Monday it was backing out of the deal because several conditions of closing were not met by a September 30 deadline.

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