Primary Energy Recycling Corp. (TSX: PRI) and Fortistar LLC announced Dec. 17 the closing of the previously announced arrangement of Primary Energy under the Business Corporations Act (British Columbia).
Under this deal, a new company formed by a consortium led by Fortistar has indirectly acquired all of the outstanding common shares of Primary Energy for cash at a price of US$5.40 per common share. The cash price has been paid in U.S. dollars and is equivalent to approximately C$6.28 per Common Share (based on the daily noon exchange rate of the Bank of Canada on Dec. 16, 2014).
It is expected that the Primary Energy shares will be delisted soon from the Toronto Stock Exchange. Primary Energy will also apply to cease to be a reporting issuer in the provinces and territories of Canada.
Fortistar, headquartered in White Plains, New York, has a 30-year history of investing in and managing power assets. Fortistar focuses on providing cost efficient power that reduces the carbon footprint. Fortistar currently has ownership stakes in over 40 projects in North America, including 265 MW of cogeneration and 400 MW of renewable facilities. F
Primary Energy, headquartered in Oak Brook, Illinois, owns and operates four recycled energy projects and a 50% interest in a pulverized coal facility. The projects have a combined electrical generating capacity of 298 MW and a combined steam generating capacity of 1.8M lbs/hour. These facilities are located in Indiana near Chicago. This includes Cokenergy LLC, which captures waste heat that is recycled into electricity and steam. Cokenergy’s electrical capacity is 95 MW and its steam capacity is 896 MLBS/HR Steam. Another facility is North Lake LLC, which recycles blast furnace gas into electricity and has an electrical capacity of 90 MW.