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Ascendant shareholders to vote on takeover

  • Future decision: Belco’s new North Power Plant is under construction. Shareholders of Ascendant Group, the parent of Belco, meet today to vote on a takeover bid (Photograph by Akil Simmons)

Shareholders of Ascendant Group Ltd are to vote today on whether to accept a takeover bid by a Canadian utilities group.

Algonquin Power and Utilities Corp has offered $365 million for the shares in Ascendant Group. The group includes electricity supplier Belco, AirCare Ltd, iEPC Limited, IFM Limited and Ascendant Properties Ltd.

Shareholders would receive $36 per share under the proposed deal, a premium of 20 per cent over yesterday’s closing share price of $30 per share. Ascendant shares traded at $22 on June 3, the day that the deal was announced.

Ascendant’s board of directors has voted unanimously in favour of accepting the bid.

In a letter sent to shareholders, board chairman Peter Durhager encouraged shareholders to approve the transaction. A two-thirds vote is needed for approval.

Should shareholders approve the deal this morning, the bid by Algonquin would require regulatory approval before going ahead.