Innergex sells HS Orka stake to Jarovarmi, not Macquarie

Innergex Renewable Energy Inc (TSE:INE) has finalised the sale of its controlling stake in Icelandic geothermal company HS Orka hf, but instead to a fund managed by Macquarie it sold the interest to Jarovarmi slhf.

The latter, an existing shareholder in HS Orka owned by a group of Icelandic pension funds, has exercised its right of first refusal regarding the sale of Innergex's fully-owned unit Magma Energy Sweden AB, which holds a 53.9% equity stake in HS Orka.

Jarovarmi has paid a total of USD 299.9 million (EUR 269m) for the purchase of Magma Sweden. The terms and conditions were the same as those agreed in March with a European infrastructure fund managed by Macquarie Infrastructure and Real Assets. That deal has been terminated.

Innergex said in a statement that it will use the net proceeds from this transaction to reimburse a previously contracted credit line and to deleverage corporate facilities. The company expects the excess cash available to it to improve by more than CAD 170 million (USD 126.2m/EUR 113.3m).

(USD 1.0 = EUR 0.898)

(CAD 1.0 = USD 0.743/EUR 0.667)

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