Staff
Magma Energy Sweden AB, a subsidiary of Magma Energy Corp., is selling a 25% stake in its 98.5%-owned Icelandic geothermal power company HS Orka to a group of Icelandic pension funds.
The purchase price is approximately US$71.5 million, which is about equal to Magma’s original cost of acquisition.
The pension funds will also hold an option until Feb. 10, 2012, to purchase new shares from HS Orka treasury that, if exercised, would increase their stake in HS Orka to 33.4% at a cost of about US$41.7 million.
The transaction is subject to a number of conditions, including further due diligence, and is expected to close in May.