Innergex to divest 100% stake in Magma Sweden

Innergex Renewable Energy Inc. has reached an agreement to sell its wholly-owned subsidiary Magma Energy Sweden A.B. which owns an equity interest of approximately 53.9% in HS Orka hf for a purchase price of US$304.8 million to a Macquarie Infrastructure and Real Assets managed European infrastructure fund.

HS Orka owns two operating geothermal facilities (Reykjanes and Svartsengi) totaling 174 MW, the 10 MW Brúarvirkjun run-of-river hydro project which is under construction, a number of prospective renewable power projects, as well as a 30% equity interest in the Blue Lagoon Geothermal Spa and Resort in Iceland.

The fully funded transaction is subject to the satisfaction of certain closing conditions, including receipt of key third party consents, a right of first refusal in respect of the shares of Magma Sweden (exercisable for two months on the same terms and conditions), as well as other customary conditions. All required conditions are expected to be satisfied in the second quarter of 2019 with closing of the transaction to be completed after the satisfaction of such conditions.