Rurelec, which currently holds 70% stake in Cascade Hydro, will issue 1,737,116 of its new ordinary shares to minority shareholders at a price of 12.5 pence per share, for a total consideration of £217,139; and has already made application for these new shares to allow trading on 23 September 2013.
In Peru, Cascade Hydro currently owns 93% of the 5.3MW Canchayllo plant, which is likely to become operational in the first quarter of 2014, other small hydro projects totalling 60MW, as well as the 255MW Santa Rita hydroelectric project, which was acquired by Rurelec in 2012.
Besides, Cascade Hydro is likely to bid for several small hydro projects under the federal tender being launched in the future.
The acquisition would enable Rurelec, which is developing a 120MW gas-fired project, to integrate its hydro and thermal assets and manage them through a team in Peru that will be headed by Jose Garcia Herz.
Rurelec CEO Peter Earl said that the acquisition increases its portfolio in Peru and allows the integration of its 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," added Earl.
