Atlantic Power Agrees to be Acquired by
I Squared Capital
On January 14, 2021, Atlantic Power announced an agreement for the Company to be acquired by I Squared Capital. The terms of the agreement are as follows:
- Common shareholders to receive US$3.03 in cash per share, a consideration that:
- Exceeds the highest trading price of the common shares in the five-year period preceding the announcement of the transaction
- Represents a 48% premium to the 30-day volume weighted average price per common share on the NYSE immediately prior to announcement
- Represents a premium of 19% to the 52-week high for the common shares immediately prior to announcement
- Convertible debentures to be converted to common shares, including a make whole premium; following conversion, debenture holders will receive US$3.03 in cash per share
- Preferred shareholders to receive C$22.00 in cash per share, a consideration that:
- Exceeds the highest trading price for each series of Preferred Shares in the 52-week and eight-year periods preceding the announcement of the transaction
- Represents a 40% premium to the average repurchase price of the Preferred Shares repurchased between 2017 and 2020 under normal course issuer bids, and
- Represents a premium of 19.5% to the average of the 52-week highs for each series of Preferred Shares immediately prior to announcement
The Board of Directors believes the transaction represents an attractive opportunity for all securityholders to realize significant cash value at closing while simultaneously removing any potential downside risk associated with future power prices, re-contracting outcomes and other risks associated with remaining a standalone public company.
The Board of Directors unanimously recommends that all securityholders vote FOR the transaction.