(Reuters) - Innergex Renewable Energy Inc (INE.TO) said on Thursday Hydro-Québec, one of the world’s largest hydropower producers, will invest about C$661 million ($497 million) for a nearly 20% stake.
The two companies plan to invest in wind and solar projects with battery storage or transmission, distributed generation, off-grid renewable energy networks, and other sectors.
Hydro-Québec will buy 34.6 million common shares of Innergex at C$19.08 per share in a private placement. Shares of Innergex rose 8.5% in morning trade to C$20.50.
Under the deal terms, Hydro-Québec has initially committed $500 million to develop power projects with Innergex.
Innergex expects to use about $50 million from the private placement to fund the development of its 200 MW Hillcrest solar photovoltaic project in Brown County, Ohio.
Hydro-Québec will nominate two candidates to its Innergex board as long as it owns at least 15% of the outstanding Innergex common shares, Innergex said.
Reporting by Shradha Singh in Bengaluru