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Calgary developers merge
1 March 2007
Calgary's Canadian Hydro Developers says it will acquire GW Power Corporation, a Calgary-based wind power developer with a half share in Alberta's 70.5 MW Soderglen Wind Plant and prospects for the development of up to 145 MW of capacity in Alberta and Ontario. The acquisition price consists of three common shares and one common share purchase warrant of Canadian Hydro for each GW share, equivalent to C$87 million. The deal is expected to close this month. Buying GW, says Canadian Hydro boss John Keating, gives the company an interest in a new wind farm that "is highly complementary to our asset base and operating platform in Alberta" and solid prospects for growth. GW's share of Soderglen's output is sold as merchant power. In Alberta's increasingly supply-constrained power market, says Keating, it provides the company with "the opportunity to participate in attractive market fundamentals." The average spot market price in the province increased nearly 15% to C$80.76 in 2006, while average on-peak prices increased 20% to C$104.91. GW's Warren Holmes says the purchase provides his company's shareholders with liquidity at an attractive price.
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