Mandate Vinge advises Jarðvarmi och Ancala Partners in connection with the acquisition of Magma Energy Sweden AB and HS Orka

June 13, 2019

Vinge has advised Jarðvarmi slhf., a consortium of 14 Icelandic pension funds, and Ancala Partners’ mid-market focused infrastructure fund Ancala Infrastructure Fund II in questions regarding Swedish law in connection with the acquisition of Magma Energy Sweden AB and its subsidiary HS Orka, Iceland’s largest private electricity generator.

In connection with the transaction, Jarðvarmi exercised its right of first refusal to acquire a 53.9% interest in HS Orka from Alterra Power Corp, a subsidiary of Innergex Renewable Energy Inc. Jarðvarmi has also agreed to acquire a 12.7% interest in HS Orka from Fagfjárfestasjóðurinn ORK. The remaining 33.4% in HS Orka was already owned by Jarðvarmi. Following the transactions Ancala Partners and Jarðvarmi will each own 50% of HS Orka.

The purchase price for the acquisition of Alterra’s 53.9% interest was USD 299.9 million. The purchase price for the acquisition of Fagfjárfestasjóðurinn ORK’s 12.7% interest was not disclosed. 

Ancala Partners and Jarðvarmi have further agreed to divest HS Orka’s 30% interest in the Blue Lagoon, Iceland’s leading tourist attraction, to Blávarmi. The sale transitions HS Orka into a pure play renewable energy platform. HS Orka has been producing renewable energy for 40 years and operates two geothermal powerplants, Svartsengi and Reykjanes, as well as a hydro powerplant at Bláskógabyggð.

The Vinge team consisted of partner Peter Sundgren and associate Christina Odengran. Counsel Maria Schultzberg advised in tax matters. 

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