Go to the Globe and Mail homepage

Jump to main navigationJump to main content


Report on Business


Streetwise gives you news and analysis on Bay Street and the world of finance
available exclusively to subscribers of Globe Unlimited

Entry archive:

Northland Power to buy in founder Add to ...

After 18 months of deliberation, Northland Power Income Fund has launched a conflict-filled purchase of its privately-owned manager.

Northland Power, a $624-million trust that owns five co-generation and wind farm facilities, plans to buy in the management company owned by founder James Temerty by issuing 41.9 million units.

These deals are always complex, but well-intentioned: They are meant to align everyone's interests. The conflict comes from ensuring unit holders in the trust don't overpay for the external management company. Financial advisor Crosbie & Co. and lawyers at Fasken Martineau have been working with independent trustees at Northland Power on this deal since Dec., 2007.

If this deal is approved by unit holders, Northland Power will preserve its dividend and pick up now assets currently owned by the private management company. And Mr. Temerty will end up owning 39 per cent of public company, with senior management holding another 6 per cent of the equity.

Report Typo/Error

Next story




Most popular videos »

More from The Globe and Mail

Most popular