Icelandic pension funds and Bristish fund buy geothermal firm HS Orka
As reported this morning in Iceland, Jardvarmur slhf, a company jointly owned by 14 pension funds in Iceland, has decided to exercise its pre-emptive right in the only private power company in Iceland, HS Orka for the 54 per cent stake sold by Canadian energy company Innergex in HS Orka. In the sale process, a fund by Australian investment bank Macquarie put in the winning offer in Magma Energy Sweden A.B, which holds the the 54 stake in HS Orka, but with the step by the pension funds this sale did not go through.
Subsequently, Ancala Partners, a foreign partner of Jardvarmur will subsequently purchase a 50% share in HS Orka versus Jardvarmur, as stated in the company announcement.
In the announcement of Innergex to the Canadian exchange this morning, the purchase price is USD 299.9 million, equivalent to ISK 37.3 billion. The market value of HS Orka, based on the purchase price of Geothermal Energy, is therefore ISK 69 billion (around USD 562m). The acquisition was approved at a shareholder meeting of Jardvarma on April 9, 2019.
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