# Innergex buys Alterra AXY



## Chica (Jan 19, 2016)

I didn't realize anything was going on until I received an email alert this morning about high volume trading on Alterra (AXY) today. A big jump from where it's been hovering around $5 to $7.80. 

Innergex is buying Alterra and I'm hoping someone can help me decipher this. According to a news release shareholders will receive C$8.25 per Alterra share, payable in C$2.06 cash and 0.4172 of a common share of Innergex​. And on the Innergex website it says this: Alterra shareholders will receive an aggregate consideration which will consist of approximately 25% in cash and 75% in common shares of Innergex.

I like the idea of alternate energy and to have some in my portfolio, but I don't like it enough to really spend a lot of money on it. I bought 100 shares in the summer when it was around $5.50 because I figured if things turned bad that's not a lot of money to lose. It was a buy and hold for me and I did get one dividend payment in September of $1.25.

So we're keeping in even numbers here. What does that mean for my 100 Alterra shares in terms of $$ and Innergex (INE) shares? Which seems to have dropped a fair amount in price today closing at $14.09.


----------



## doctrine (Sep 30, 2011)

Innergex bought Alterra at a huge premium. It won't actually be accretive to Innergex shareholders until not only their projects under construction finish, but some of their _*prospective*_ projects are approved and finished years from now. I think if you own renewable assets then you can get a big premium. TRP recently sold a huge chunk of solar assets for $500-600M. People are paying up as interest rates have likely peaked on this current rally. As well, renewables have become so expensive, they're actually not that many new projects, further making these assets more valuable.


----------

