Power project developer and operator Rurelec PLC has announced it has acquired the remaining minority interests in Cascade Hydro Limited, a UK holding company with a portfolio of over 300MW of greenfield hydroelectric projects under development in Peru.
Power project developer and operator Rurelec PLC has announced it has acquired the remaining minority interests in Cascade Hydro Limited, a UK holding company with a portfolio of over 300MW of greenfield hydroelectric projects under development in Peru.
Rurelec, which currently owns 70% of Cascade, has agreed to acquire the remaining 30% minority stake in Cascade by way of an exchange of shares. The minority shareholders will receive 1,737,116 new Rurelec shares for their holdings in Cascade, issued at a price of 12.5 pence per share, an aggregate consideration of £217,139. Application has been made for these new shares to be admitted to trading on 23 September 2013.
Cascade indirectly owns interests in hydroelectric plants under construction and development in Peru, including 93% of the 5.3MW Canchayllo plant, which is due to achieve commercial operation in the first quarter of 2014, as well as 60MW of other small hydro projects. Additionally Cascade owns the 255MW Santa Rita hydroelectric project which was acquired by Rurelec in 2012.
Cascade is shortly due to submit a number of small hydro projects in a tender for Peruvian government backed power purchase agreements for which the Board of Rurelec has strong expectations. In recent months, Rurelec has initiated its first thermal project of 120MW in Peru based on a potential gas field to be developed on Block 183 near Tarapoto. The acquisition of the minority interests in Cascade will allow Rurelec to consolidate its run of river hydro and thermal developments and manage them through a team in Peru, headed by José García Herz.
“The completion of the acquisition of Cascade increases our portfolio in Peru and allows the integration of the Company’s operations," commented Peter Earl, CEO of Rurelec. "In the coming weeks we expect to complete our dual listing of shares in Chile on the Santiago Stock Exchange. With the recent merger of the Lima and Santiago stock markets, now is an excellent time for Rurelec to be building up a portfolio of generation interests which stretch across Chile and Peru. We are excited at this important development."
Image: Construction work on the 5.3MW Canchayllo plant