Altius Minerals lifts Great Bay Renewables stake to 50% in a $390M deal that sees Apollo exit and Northampton become an equal partner. The transaction boosts Altius's exposure to US electricity royalty cash flows.
Alpha Score of 34 reflects weak overall profile with poor momentum, weak value, moderate quality. Based on 3 of 4 signals – score is capped at 90 until remaining data ingests.
Altius Minerals Corp. will increase its effective stake in Great Bay Renewables to 50% from 29% through a multifaceted transaction valued at roughly US$390 million. The deal, announced Monday, involves Apollo Global Management selling its direct 50% interest in Great Bay Renewables to Northampton Capital Partners, which then sells its minority stake in the holding company Altius Renewable Royalties Corp. to Altius. The result leaves Altius and Northampton as equal 50-50 partners in the renewables royalty business.
Altius will pay US$168 million for the remainder of Altius Renewable Royalties Corp., funding the purchase from existing liquidity and credit facilities that are being expanded to reflect the balance sheet integration of Altius's recent acquisition of Lithium Royalty Corp.
Apollo, which carries a Weak Alpha Score of 34 out of 100 in AlphaScala's ranking of financials stocks, is exiting the venture after eight years. Brian Dalton, Altius's CEO, thanked Apollo for its early support of Great Bay Renewables and its role in building the business.
"We are excited to enter into this transaction and increase our participation in the exciting future ahead that we envision for GBR, a business that we helped to conceptualize and found 8 years ago," Dalton said. He added that Great Bay Renewables will continue under the leadership of Frank Getman and his team. The royalty portfolio now covers nearly 9 GW of generation capacity, and Dalton called the company's growth trajectory an inflection point as US electricity demand rises.
The transaction is subject to customary closing conditions and is expected to close in late July.
Great Bay Renewables provides royalty financing to US electricity generators, a model that has gained traction as power demand growth outpaces the pace of new supply. Altius, a mining royalty company based in St. John's, Newfoundland, initially helped create the venture alongside Apollo and Northampton. The new structure concentrates Altius's exposure to the power sector while doubling its share of Great Bay's future royalty revenue.
The deal follows a string of asset sales by Apollo in the renewable energy space as the private equity giant shifts toward other infrastructure verticals. Northampton, a specialized infrastructure investor, becomes a full co-owner of the royalty platform.
Altius shares trade on the Toronto Stock Exchange under the ticker ALS and on the OTCQX under ATUSF. The company has roughly 55.7 million shares outstanding and belongs to the S&P/TSX Composite index.
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