Courtesy of Benzinga.
Atlantic Power Corporation (NYSE: AT) today announced that it has entered into an agreement with Primary Energy Recycling Corporation (“Primary Energy” or “PERC”), whereby PERC will purchase the Company’s 7,462,830.33 common membership interests in Primary Energy Recycling Holdings, LLC (“PERH”) (14.3% of PERH total interests) for approximately US$24 million, plus a management termination fee of approximately US$6.1M for a total price of US$30.1 million. The agreed upon price for the Company’s private interest in PERH was established on December 19, 2011 and represented a 16% discount to the 60 day volume weighted average trading price of Primary Energy’s common shares at that time. The transaction remains subject to pricing adjustment or termination under certain circumstances. Completion of the transaction is subject to PERC obtaining financing.
“Our minority interest in Primary Energy was acquired when Atlantic purchased CPILP, and the sale of our position reflects our focus on optimizing our current portfolio and selling positions that are not core to our business,” said Barry Welch, President and CEO of Atlantic Power. “Primary Energy approached us with an offer and we viewed it as an opportunity to rationalize our portfolio. The Primary projects are different from the rest of our portfolio and we did not think there were adequate operational synergies to maintain our position.”
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