Rurelec Acquires Cascade Hydro Limited
Rurelec PLC (AIM: RUR), the owner, operator and developer of power generation capacity internationally, today announces the acquisition of the remaining minority interests in Cascade Hydro Limited ("Cascade") a UK holding Company with a portfolio of over 300 MW ofgreenfield hydro-electric projects under development in Peru.
Rurelec, which currently owns 70 per cent. of Cascade, has agreed to acquire the remaining 30 per cent 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 ("New Ordinary Shares") to be admitted to trading on 23 September 2013.
Cascade is a UK holding company, which indirectly owns interests in hydroelectric plants under construction and development in Peru, including 93 per cent. of the 5.3 MW Canchayllo plant, which is due to achieve commercial operation in the first quarter of 2014, as well as 60 MW of other small hydro projects. Additionally Cascade owns the 255 MW 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 (PPAs) for which the Board of Rurelec has strong expectations. In recent months, Rurelec has initiated its first thermal project of 120 MW 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 an excellent management team in Peru, headed by José García Herz.
Speaking today, Peter Earl, CEO of Rurelec said. "The completion of the acquisition of Cascade increases our portfolio in Peru and allows the integration of the Company's operations. 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."
Following the admission of the New Ordinary Shares to AIM, the Company will have in issue 554,892,492 ordinary shares of 2p each. The Company does not hold any ordinary shares in treasury. Therefore the total number of shares with voting rights in the Company will be 554,892,492. This figure may be used by Shareholders in the Company as the denominator for the calculations by which they will determine if they are required to notify their interest in, or a change to their interest in, the share capital of the Company following Admission.