VANCOUVER, Feb. 13, 2012 /CNW/ - Alterra Power Corp. (TSX: AXY)
announces that a group of Icelandic pension funds ("Jarðvarmi") that
currently holds a 25% interest in HS Orka hf has delivered notice that
it intends to increase its stake to 33.4% in accordance with the terms
of the original purchase agreement entered into on June 1, 2011.
Alterra Power's interest in HS Orka will be reduced from 75% to 66.6%.
To effect the change in ownership, Jarðvarmi will invest ISK 4.7B (USD
38.5 million) in HS Orka through the purchase of 878,205,943 treasury
shares at a price of ISK 5.35 per share. This price represents a 15.6%
increase over the original price paid by Jarðvarmi of ISK 4.63 per
share for their initial 25% stake. These funds are expected to be used
by HS Orka for the equity requirements for 80 MW of expansions which
will increase the Reykjanes plant capacity from 100 MW to 180 MW.
Closing is expected to occur before the end of February. Alterra Power
was advised on the transaction by MP Bank.
About HS Orka
HS Orka is the largest privately owned energy company in Iceland,
producing 9% of the country's power needs and 10% of the country's
heating needs. Installed geothermal power capacity is 175 MW from the
Svartsengi and Reykjanes power plants. In addition, HS Orka generates
150 MW of thermal energy for district heating. Expansions are planned
that could increase HS Orka's geothermal power production capacity to
405 MW by 2016.
About Alterra Power Corp.
Alterra Power Corp is a leading global renewable energy company. We
operate six power plants totaling 570 MW of capacity, including two
geothermal facilities in Iceland, a geothermal plant in Nevada, British
Columbia's largest run of river hydro facilities and the province's
largest wind farm. Our 315 MW share of production capacity generates
over 1,500 GWh of clean power annually. We have an extensive portfolio
of exploration and development projects, a skilled international team
of explorers, builders and operators as well as the strong financial
capacity to support our aggressive growth plans.
Cautionary Note regarding Forward-Looking Statements and Information
This news release contains certain "forward-looking information" within
the meaning of Canadian securities laws, which may include, but is not
limited to, statements with respect to future events or future
performance, the fulfillment of all conditions precedent to the
obligation of the parties under the agreements, required consents and
third party approvals. This news release also contains statements with
respect to our plans to expand our operations, management's
expectations regarding our growth, business prospects and opportunities
and energy generation capacities. Such forward-looking information
reflects management's current beliefs and is based on information
currently available to management.