Boralex Acquires Invenergy’s Interests in 5 Quebec Wind Farms

Boralex (TSX:BLX) announced on Friday (September 14) that it has acquired Invenergy Renewables’ economic interests in five farms located in Quebec for a total cash consideration of C$215 million.

The five wind farms have a total net installed capacity of 201 MW and were commissioned between March 2012 and December 2016. The projects also have a long term power purchase agreements (PPA) with Hydro Quebec Distribution, which the release says will lapse sometime between 2032 and 2041.

The acquired projects have a gross capacity of 391.5 MW and are located in the MRC d’Avignon and the MRC des Appalaches regions in Eastern Quebec. The projects include the 138.6 MW Le Plateau I farm, 135.7 MW Des Moulins I farm and the 74.8 MW Roncevaux farm. Also included in the acquisition are two 21.2 MW farms, Le Plateau II and Des Moulins II.

“This acquisition contributes to our objective of sustainable and predictable cash flow growth for our investors while supporting the generation of electricity derived from renewable energy for thousands of homes in Québec,” Patrick Lemaire, president of Boralex, said in the release.

With this acquisition, Boralex’s net capacity has jumped 12 percent to 1,820 MW while extending its weighted average PPA term to 14 years. The company now has 568 MW installed capacity in Quebec.

Further, it was said that the company now becomes the manager of these farms as it has taken over the facilities’ management agreements and will control the day-to-day activities of the site. Crucially, the projects will be injected with additional operational cash flows which the company hopes will lead to increased operational synergies.

Also, it was noted that the community partners holding the interests in two of the projects have waived their rights of first offer and that all the required approvals and consents were obtained from the required parties including Competition Bureau of Canada.

The company said that cash consideration of C$215 million were financed from the combination of a private placement and net proceeds from Boralex’s previously announced subscription receipts worth C$207 million.

Following the announcement, shares of Boralex were down 1.21 percent were trading at C$19.67 as of 1:06 p.m. EST on Friday. Over 39,000 shares were traded as of the time of this writing.

The stock has a “Buy” ranking on TradingView with 10 verticals in favor, nine against and seven in neutral. On TipRanks, the stock has an analyst target price of C$25.50 which translates to a 29.70 percent upside from the current price.

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Securities Disclosure: I, Bala Yogesh, hold no direct investment interest in any company mentioned in this article.