Capital Power Makes Multimillion Dollar Deals

Posted by Alan Zunec on Wednesday, June 22nd, 2011 at 12:52pm.

Capital Power Corporation, an Edmonton firm, has managed to work out a couple of multimillion dollar deals recently. The first is that Atlantic Power, based in Boston, will take over all of Capital Power Income LP, an affiliate company, for $320.3 million. Under that same agreement, Capital Power Income LP will take over two North Carolina power plants, one in Roxbury and the other in Southport. That firm already has 18 power plants in locales outside of the North Carolina region.

All of this has caused movement on the Toronto Stock Exchange. The shares for Capital Power were seeing a four cent decrease, coming in at $26.75 per share on a volume of roughly 33,000 shares. Atlantic Power saw an increase of five cents per share for a price of $15.01, based on its volume of 103,000 shares. Lastly, Capital Power Income LP saw their shares go to $19.28, an increase of 65 cents, with a volume seen of 138,500 shares.

The deals have already been approved by the boards and are expected to close sometime in 2011’s fourth quarter. At that time Capital Power will no longer be managing CPILP. The $320.3 million is being paid for a 29 percent interest in CPILP. The firm will also receive an additional $10 million for the termination of related management functions. Payment will be in a combination of cash, Atlantic stock and the acquiring of the North Carolina plants, which have been valued at $121 million.

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