Canada's First ‘Go Shop' Takeover Bid Closes

Algonquin Power Income Fund acquired AirSource Power Fund I LP in a transaction valued at approximately $210 million. AirSource developed Manitoba's first (100 MW) operating wind energy facility located near the Town of St. Leon, Manitoba. AirSource unitholders were offered units of Algonquin or limited partnership units of Algonquin (AirSource) Power LP exchangeable into Algonquin units. Pursuant to the “go shop” provisions of the support agreement, which was the first of its kind to be entered into in Canada without the normal “deal protection” mechanisms, AirSource retained the right to solicit or entertain competing offers without providing “matching rights” or a break fee.
Algonquin was represented by Blake, Cassels & Graydon LLP with a team that included Ken Pearce, Leslie Wong, Kate McGilvray, Michael Fabbri, Kurt Sarno and Christina Beaudoin in their Toronto office (corporate/securities) and Ronald Mar and Edmund Gill in the Calgary office (tax).
The AirSource independent liquidity committee, which structured and orchestrated the transaction, was represented by Davis & Company LLP and Sheinin & Company, its affiliated firm of chartered accountants. Al Hudec and Ruby Chan of Davis's Vancouver office advised with respect to securities and M&A matters, assisted by Alec Szibbo with respect to general commercial matters.