Magma Energy said that this merger will strengthen both companies and will create a larger, more diversified renewable energy company with assets across a broader spectrum of the clean energy industry.
Geothermal will remain a core focus of the new company, but hydro, wind and solar assets will be solid business platforms for future growth, according to the company.
As per the terms of the arrangement agreement, Magma will change its name to Alterra and each Plutonic shareholder will receive 2.38 shares of Magma for each Plutonic share held.
Once the merger is completed, there will be 470 million shares of Alterra issued and outstanding and 487 million shares on a fully diluted basis.
