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Alterra Power considering offer on potential sale of Icelandic HS Orka

Svartsengi geothermal power plant of HS Orka, Iceland (source: Enex)
Alexander Richter Alexander Richter 29 Jun 2012

Canadian renewable energy company Alterra Power has signed a non-binding term sheet on the potential sale of its Icelandic holdings, namely its 2/3 share in Icelandic power company HS Orka, to an Icelandic group of investors.

In an announcement one hour ago, Canadian renewable energy company Alterra Power Corp. (TSX: AXY) reports “that it has received an unsolicited offer from a private Icelandic entity for the purchase of Alterra’s interest in HS Orka hf, an Iceland geothermal power company owned 66.6% by Alterra and 33.4% by a syndicate of Icelandic pension funds. Alterra has signed a non-binding term sheet to pursue such a transaction conditional on reaching a definitive agreement, obtaining necessary approvals from the Icelandic government and other customary conditions.

Alterra’s VP Corporate Relations, Anders Kruus, stated, “Exploring this transaction does not change Alterra’s focus on expanding and optimizing its clean energy operations in Iceland. However, we felt we should consider this unsolicited proposal if it maximizes value for Alterra shareholders and is supported by Icelandic stakeholders.”

Source: Alterra Power announcement by e-mail