Macquarie Power & Infrastructure Income Fund (TSX: MPT.UN) has made a bid to buy the Clean Power Income Fund, a Toronto-based trust that owns the 99 MW Erie Shores wind farm in Ontario and several hydro and biomass plants across the country.
The cash and stock offer is worth approximately $6.39 per unit, a 15% premium over the $5.47 price currently being offered by Algonquin Power Income Fund.
Clean Power is recommending that unit holders accept the offer, while Algonquin Power Income Fund will allow its rival bid to expire.
“We believe that Macquarie Power & Infrastructure Income Fund’s proposal provides superior value for Clean Power unitholders as well as a compelling opportunity to participate in a stable, growing fund focused on long-life infrastructure assets,” said Gregory Smith, Chief Executive Officer of MPT. “Moreover, the addition of CPIF’s complementary energy assets would extend the average life of MPT’s assets, significantly diversify our portfolio by asset type and geography, and generate a sustainable increase in distributable cash per unit. With this acquisition, MPT would strengthen its presence and growth opportunities in the North American power infrastructure arena while establishing a foothold in the attractive renewable energy sector.”
Macquarie Power & Infrastructure Income Fund invests in infrastructure assets with an emphasis on power infrastructure. MPT’s strategy is to acquire and actively manage a high-quality portfolio of long-life infrastructure assets to improve their financial performance and provide growing and sustainable distributions to unitholders for the long term. MPT’s infrastructure portfolio includes Cardinal, a 156MW gas-fired cogeneration power station in Ontario, and a 45% indirect interest in Leisureworld Senior Care LP, a leading long-term care provider in Ontario with over 30 years operating experience. MPT is managed by a wholly-owned subsidiary of Macquarie Bank Limited and a member of the Macquarie group.
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