Canadian Hydro Developers, Inc. and Vector Wind Energy Inc. announced today that they have entered into an arrangement agreement pursuant to which Canadian Hydro will acquire all of the issued and outstanding common shares of Vector.
The agreement includes any Vector shares issued on the exercise of outstanding options or warrants prior to the effective date of the acquisition at a price per Vector Share of CAN$0.30 cash. This price represents a 50% premium over the volume weighted average price of Vector Shares on the TSX Venture Exchange for the 20 trading days ending October 11, 2006. Canadian Hydro Developers owns and operates 18 renewable energy-generating plants, including water, wind, and biomass facilities in British Columbia, Alberta, and Ontario. It currently generates 230MW of power, and has an additional 385MW nearing construction. The acquisition will require the approval of two-thirds of the votes cast by Vector shareholders and warrant holders at a special meeting. Directors of Vector have unanimously approved the deal and are recommending shareholders and warrant holders vote in favour. Directors and officers who own 26 per cent of the shares have agreed to support the deal. Vector and Canadian Hydro have also entered into an agreement under which Canadian Hydro has acquired three of Vector's wind prospects in Ontario for total consideration of CAN$750,000.
