Harvest International New Energy looks to expand its renewable energy sector with purchase of gasification technology company.
The board of directors of
Alter NRG Corp., Calgary, Alberta, after consultation with its financial and legal advisors, have unanimously approved a plan under which Harvest International New Energy has agreed to offer to acquire, through its wholly owned subsidiary, 1030629 B.C. Ltd., all of the issued and outstanding common shares of Alter NRG for C$ 5.00 in cash per share by way of a board-approved takeover bid. The total purchase price is around C$147 million. The deal was first announced on March 27, 2015
Harvest, a Delaware-based corporation, is wholly owned by
Sunshine Kaidi New Energy Group Co., a privately held company in China. The company is focused on investing in and development renewable energy technologies. The deal, if completed, will be the second acquisition of renewable energy technologies in North America for Harvest . In 2014, the company acquired all of Rentech Inc.’s alternative energy technologies. Alter NRG sells the Westinghouse Plasma gasification technology through a wholly owned subsidiary called Westinghouse Plasma Corp.
Cormark Securities Inc., Alter NRG’s financial advisor, determined the offer is fair to shareholders. All of Alter NRG ’ s directors and executive officers , as well as Ervington Investments, holding in the aggregate about 17.9 percent of the common shares, have entered into lock-up agreements with the offeror, pursuant to which they have agreed to tender all of their Alter NRG shares to the offer.
Commenting on behalf of Alter NRG, Walter Howard, CEO, says, “Given the substantial premium to market, the offer is obviously very attractive from a financial perspective to shareholders of Alter NRG. However, it is also strong validation of the company’s business and technology.
With significant financial and technical capabilities, Harvest says it is well positioned to support the accelerated global deployment of Alter NRG’s technology, products and services. Harvest says that its current and prospective clients will be the beneficiaries of continued investment by Harvest and “we look forward to sustaining our commitment to technology leadership and client service.”