Finavera Renewables, the Irish alternative energy company that is being taken over by Canadian group Cascade Minerals, is buying AquaEnergy, a specialist in wave power, in an all-share transaction valuing the target group at about $9 million (€7.1 million).
The announcement comes two months after Finavera bought a 10 per cent stake in the US company. Under the terms of the new agreement, no cash will change hands, but shareholders in AquaEnergy will receive one Finavera share for every AquaEnergy share they hold.
In a statement released yesterday, the two groups said both companies' and shareholders' interests were best served through consolidating ownership and combining resources.
AquaEnergy, a Washington-based company that is currently developing wave energy projects in Portugal, the US and Canada, will become a subsidiary of Finavera, giving the Irish group control of AquaBuoy, a commercially viable technology capable of generating electricity from onshore and offshore windfarms.
Jason Bak, chief executive of Finavera, welcomed the acquisition, saying it represented a huge opportunity for the Irish group to play an important part in the future of renewable energy.
Finavera said last week that it had agreed a reverse takeover with Cascade Minerals, which will see the Canadian group issuing its stock to Finavera's shareholders.
