Fort Chicago Energy Partners L.P. is acquiring Pristine Power Inc. for about $118-million. In M&A lingo, the two firms struck a "pre-acquisition agreement" that was made public Tuesday.
Pristine Power develops independent power plants in Ontario and British Columbia, and current projects include the York Energy Centre in Ontario and the MacKenzie Green Energy Centre in B.C.
If the deal is approved, Pristine shareholders will get 0.2703 Class A LP units of Fort Chicago and warrant holders will get $0.02 in cash for each warrant. Because the deal is mostly paid for in units, Pristine shareholders will get access to Fort Chicago's monthly cash distributions.
The implied purchase price being offered works out to a 17% premium to Pristine's closing price on Tuesday. Pristine's board already approved the takeover.
Haywood Securities advised Pristine on the deal and Capital West Partners provided a fairness opinion.