Algonquin Completes KMS Takeover Bid

On March 15, 2002, Algonquin Power Trust, a trust of which Algonquin Power Income Fund is the sole beneficiary, completed a takeover bid for KMS Power Income Fund, which has an enterprise value of approximately $125 million. A total of approximately 86.7 per cent of the outstanding KMS trust units and approximately 47.3 per cent of the outstanding principal amount of KMS convertible debentures were tendered to the offer in consideration of the issuance of an aggregate of 6,099,557 trust units of Algonquin Power Income Fund. Algonquin Power Trust intends to exercise its rights under KMS’s trust declaration and effect a subsequent acquisition transaction so as to acquire the remaining trust units not tendered under the offer.
Ken Pearce and Les Wong (securities), Ian Goldberg (corporate) and Peter Lee and Paul Stepak (tax) of Blake, Cassels & Graydon LLP in Toronto acted for Algonquin Power Income Fund and Algonquin Power Trust. Mike Krawitz and Carmel York of Krawitz & Associates acted for KMS Energy, Inc., the manager of KMS Power Income Fund. Pat Finnerty and Kristie Smith (securities) of Blake, Cassels & Graydon in Calgary acted for the trustees of KMS Power Income Fund.