Innergex Power Income Fund and Innergex Renewable Energy Inc. have entered into a definitive agreement to undertake a strategic combination of the two entities.
Innergex Power Income Fund will acquire Innergex Renewable Energy Inc. by way of a reverse take-over, thereby effecting at the same time the conversion of Innergex Power Income Fund to a corporation, Innergex reported.
The combination will create a pure play corporation (the “Combined Innergex”) that will be one of the largest independent renewable power producers in Canada.
“We are pleased to recommend a transaction that secures growth and generates significant distributable cash accretion for our unitholders over the years to come while maintaining our distribution at the level we had forecasted for 2011 and beyond”, said Jean La Couture, chairman of the board of trustees and co-chair of the special committee. “The combination also has significant other benefits such as removing the uncertainties regarding the trust conversion and allows the internalization of a seasoned management team.”
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