Atlantic Power Corporation (NYSE: AT) disclosed that it has signed an agreement with I Squared Capital, a private equity firm aiming at global infrastructure investments. As per the agreement, I Squared Capital has bought Atlantic Power Corporation for $3.03 per share.
The enterprise value of this new agreement is nearly US$961 million. This value is depending on the current foreign exchange rates. The board of directors of Atlantic Power has endorsed this deal. They have assessed this deal with the help of financial and legal advisors and discovered that this deal is beneficial for the firm.
This acquisition will provide many opportunities for Atlantic Power as the future value of firm's shares is highly reliant on power prices and re-contracting results for several major Power Purchase Accords that are going to terminate in the next three to five years. The buying of firm shares for cash would eliminate this ambiguity for shareholders. It also offers instant and substantial cash value.
Shares of Atlantic Power Corporation (NYSE: AT) rocketed 44.76% during the pre-market trading session of Friday. The firm’s share has experienced a change of $1.70 from the past 52-weeks of low range and $2.54 from the past 52-weeks of high range. AT’s share soared 23.53% from its 52-weeks low and plunged -17.32% from its 52-weeks high. This company’s market capitalization is $189.10 million at the time of writing.
The shareholders of AT to get $3.03 per share in cash, which signifies a 44% dividend to its last closing share price of $2.10 on Jan. 15, 2021. A Plan of Arrangement (the "Arrangement") under the Business Corporations Act will conclude the acquisition of the outstanding shares of Atlantic Power and the repayment of the outstanding preferred shares of APPEL.
Following the arrangement, the shareholder rights plan of Atlantic Power will be discontinued and all rights to buy common stock of Atlantic Power given under the shareholder rights plan will be revoked.