With the acquisition, Boralex has strengthened its position as France’s largest independent wind power producer.
According to Wednesday’s release, the portfolio consists of 163 megawatts (MW) in operation, with 10 MW under construction and an additional pipeline of 153 MW.
Patrick Lemaire, CEO of Boralex, said in a press release that the company has strengthened its position as France’s largest independent wind power producer while improving its growth prospects in light of development goals set by the French government.
Boralex in the release said that it will use the C$100 million available to it under Tranche B of a subordinated credit facility put in place on March 29, 2018. Boralex expects Tranche B to be drawn down sometime next month.
“With this acquisition, Boralex stands to benefit from numerous operational synergies, while fully capitalizing on its unique and integrated model as developer, prime contractor and operator of its projects,” said Patrick Decostre, vice president and general manager of Boralex’s European division.
Boralex currently has an installed capacity of 1,619 MW around the world. The additional 15 projects in connection with the transaction now push Boralex’s capacity in France up to 799 MW. Meanwhile, Kallista Energy has an installed capacity of 213 MW in France with 100 MW further in development.
Kallista Energy previously announced the renewal of a wind farm in France with modern wind turbine blades. It is set to produce four times more electricity than previous models.
Following Wednesday’s announcement, Boralex was down 2.2 percent and closed trading at $20.94. The stock had a volume of 96,296 at the time of writing. On TipRanks, Boralex has an analyst price target of C$26 with a “moderate buy” ranking.
However, TradingView has a strong sell on the stock with 16 verticals against it, nine neutral and one in favor of the stock.
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Securities Disclosure: I, Bala Yogesh, hold no direct investment interest in any company mentioned in this article.