Primary Energy To Be Taken Private By Fortistar-Led Consortium

(RTTNews) - Primary Energy Recycling Corp. (PRI.TO) Monday said it has agreed to be purchased by a consortium led by Fortistar LLC for $5.40 per share in cash. Following the announcement, shares of the Oak Brook, Illinois-based energy company soared over 24 percent.

Primary Energy is a clean-energy company that generates revenue by capturing and recycling heat and byproduct fuels into electricity. The cash price will be paid in U.S. dollars and is equivalent to about C$6.07 per share, which represents a premium of about 29 percent to the closing price on October 17. The company trades on the Toronto Stock Exchange.

The acquisition will be financed through a $215 million senior credit facility arranged by Investec USA Holdings Corp., with the balance through equity commitments from Fortistar and its partners, including John Hancock Life Insurance Company and Prudential Capital Group.

Chairman Robert Peiser said, "This transaction with Fortistar, which is the culmination of this extensive review of strategic alternatives, provides clear and compelling value to our shareholders, while providing the same level of service that is now offered to our customers."

Board directors and senior officers of Primary Energy, who collectively own about 44.5 percent stake, have agreed to vote in favor of the transaction. The board has also recommended its shareholders to vote in favor of the deal.

Following completion of the transaction, the shares of the company will be de-listed from the TSX and no longer traded publicly.

PRI.TO is currently trading at C$5.84, up C$1.14 or 24.26%.