Capital Power Announces Strategic Acquisition of Two Contracted Combined-Cycle U.S. Gas Generation Facilities and a $400 Million Subscription Receipts Offering
EDMONTON, Alberta, Nov. 20, 2023 (GLOBE NEWSWIRE) -- Capital Power Corporation (“Capital Power” or the “Company”) (TSX: CPX) announced today that it has entered into two separate definitive agreements with CSG Investments, Inc., a subsidiary of Beal Financial Corporation, to acquire:
- Under the newly established 50/50 partnership, Capital Power and BlackRock will each be responsible for funding 50% of the cash consideration for the Harquahala Acquisition.
- Capital Power will be responsible for the operations and maintenance and asset management for which it will receive an annual management fee.
- The net purchase price of the Acquisitions attributable to Capital Power is expected to be US$1.1 billion (~$1.5 billion), subject to working capital and other customary closing adjustments.
- “Capital Power's acquisition of La Paloma and the partnership in Harquahala’s gas generation assets marks a significant milestone in our strategic growth,” said Avik Dey, President and Chief Executive Officer of Capital Power.