CTG, SDIC seen bidding for Canada’s North­land

At­tempt to buy is con­sis­tent with strat­egy to snap up clean en­ergy pro­duc­ers abroad

China Daily (Hong Kong) - - BUSINESS | MARKETS - By BLOOMBERG

China Three Gorges Corp and SDIC Power Hold­ings Co are among com­pa­nies bidding for Cana­dian re­new­able en­ergy pro­ducer North­land Power Inc, according to peo­ple fa­mil­iar with the mat­ter.

First-round bids for the Toronto-based com­pany, which has a mar­ket value of C$3.7 bil­lion ($2.8 bil­lion), were due on Dec 2, said the peo­ple, who asked not to be iden­ti­fied be­cause the mat­ter is pri­vate. Some Cana­dian pen­sion funds also had a look at the com­pany but balked at its val­u­a­tion ahead of the bid dead­line, the peo­ple said.

North­land Power an­nounced in July that the com­pany had com­menced a re­view of strate­gic al­ter­na­tives, a spokesman for the com­pany said in an emailed state­ment on Fri­day, de­clin­ing to com­ment fur­ther. Rep­re­sen­ta­tives of Three Gorges and SDIC didn’t im­me­di­ately re­spond to phone calls and emails seek­ing com­ment.

Cana­dian Im­pe­rial Bank of Com­merce and JPMor­gan Chase & Co are work­ing on North­land’s re­view.

The com­pany owns or has in­vest­ments in power generation fa­cil­i­ties in Canada, the US and Ger­many. Its

North­land Power Inc’s mar­ket value

euros

the cost of SDIC Power’s ac­qui­si­tion of Rep­sol SA’s off­shore wind-en­ergy busi­ness in May

fa­cil­i­ties pro­duce elec­tric­ity from clean nat­u­ral gas and other re­new­able sources, in­clud­ing so­lar, wind and biomass.

Chi­nese Pres­i­dent Xi Jin­ping has sought to cut pollution and spur in­vest­ment in non-fos­sil fuels in the world’s sec­ond-largest econ­omy.

Three Gorges agreed to buy con­trol of Ger­man wind farm op­er­a­tor WindMW GmbH from Black­stone Group LP in June, in a deal valu­ing the tar­get at about 1.7 bil­lion euros ($1.8 bil­lion) in­clud­ing debt, peo­ple fa­mil­iar with the mat­ter said at the time.

SDIC Power ac­quired Rep­sol SA’s off­shore wind-en­ergy busi­ness for 238 mil­lion euros in May, according to data com­piled by Bloomberg.

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