Exciting Deal Between Northampton Capital and Altius Renewable Royalties

Author: Addison Perry Updated: 09-12-2024 08:54 PM

Northampton Capital Partners Engages with Altius Renewable Royalties

Northampton Capital Partners LLC, known for its strategic investment approach, announced that its affiliated entity has forged a definitive agreement with Altius Renewable Royalties Corp. This partnership aims to enhance the operational capacity of Altius Renewable Royalties Corp. and represents a significant step in Northampton's commitment to the renewable energy sector.

Transaction Details and Structure

As part of this arrangement, Northampton plans to acquire the public float of Altius Renewable Royalties for C$12.00 per share. Each shareholder holding shares in Altius Renewable Royalties, except Altius Minerals itself, will receive cash for their holdings. This covers all outstanding shares from Altius Renewable Royalties, excluding those held by Altius Minerals.

The transaction is designed to be executed through a judicially sanctioned plan of arrangement under applicable business laws. It requires substantial approval from existing shareholders, ensuring that a clear majority endorses the process, which signifies robust support for the future of the company under this new ownership structure.

Importance of the Agreement

The chief executive officer of Northampton, Geoffrey Strong, expressed enthusiasm regarding the partnership, praising the achievements of Altius Renewable Royalties to date. He emphasized the firm’s readiness to provide necessary support and resources, looking towards a future of substantial growth together. This venture is not merely a financial arrangement, but a long-term strategic partnership that aligns with Northampton’s vision of expanding into sustainable energy markets.

Shareholder Support and Approval Process

The success of the transaction hinges on the collaboration and cooperation of all involved parties. Altius Minerals, along with its management and selected shareholders, are on board, having secured approximately 81% of the outstanding shares’ voting power in favor of the proposed transaction. This overwhelming support is crucial as it reflects confidence in the direction that Northampton Capital and Altius Renewable Royalties are headed.

Financial Advisors and Professional Guidance

In orchestrating this substantial transaction, the Special Committee of Altius Renewable Royalties has engaged National Bank Financial Inc. as its independent financial advisor. This guidance is vital for navigating the complexities of business restructuring and maximizing shareholder value during this transition.

Northampton Capital's Background and Vision

Northampton Capital Partners LLC specializes in managing alternative assets with a clear focus on the middle market. The firm strategically targets key sectors including energy and digital infrastructure, well-aware of the increasing demand for sustainable and efficient energy solutions in today’s market.

Founded by distinguished leaders in finance and infrastructure investment, Northampton operates from major hubs such as New York and Miami, which enables it to remain competitive and agile within the ever-evolving investment landscape.

Overview of Altius Renewable Royalties

Altius Renewable Royalties Corp. plays a pivotal role in the renewable energy sector, being committed to fostering growth by providing investment to renewable energy developers. The company currently holds a diverse portfolio of renewable energy royalties, covering substantial renewable energy projects ranging across the U.S.

With 35 active renewable energy royalties representing an impressive 2.6 gigawatts of operating capacity, Altius is at the forefront of the transition to sustainable energy. Furthermore, their pipeline projects set to deploy an additional 5.6 gigawatts in various stages of development illustrate a proactive approach to meeting future energy demands and contributing positively to the environment.

Frequently Asked Questions

What is the primary goal of the agreement between Northampton and Altius?

The agreement aims to enhance the operational capacity of Altius Renewable Royalties through a strategic acquisition, consolidating their resources for future growth in the renewable energy sector.

How much will shareholders receive per share in this transaction?

Each shareholder (excluding Altius Minerals) will receive C$12.00 for each share held in Altius Renewable Royalties.

What approvals are needed before the transaction can be completed?

The transaction requires the approval from at least 66 2/3% of the votes cast by Altius shareholders, along with additional customary court and regulatory approvals.

What percentage of shares do the Supporting Shareholders hold?

The Supporting Shareholders collectively hold approximately 81% of the ARR Shares, indicating a strong backing for the transaction.

What is the significance of the professionals involved in this transaction?

Advisors like National Bank Financial provide critical insights and valuations necessary for maximizing shareholder value and ensuring a smooth transition of ownership.

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