Bonneville Pacific Corp. said it has reached a definitive agreement that will permit Portland General Corp. to acquire up to 49 percent of Bonneville's common stock. Closing on the agreement is expected by mid-October.
Headquartered in Salt Lake City, Bonneville develops, owns and operates independent energy projects. It also has subsidiaries active in fuels exploration and development, food processing and greenhouse operations, and waste management.Portland General is an energy holding company headquartered in Portland, Ore. A major element in its business strategy is to develop its independent power business.
"In partnership with Portland General, Bonneville has the opportunity to accelerate its development strategy by capitalizing on the support and experience of a company with more than 100 years in the electric energy business," said Robert L. Wood, Bonneville's chairman and chief executive officer.
Under the agreement, Portland General will purchase from Bonneville, for an aggregate price of $34 million, a $10 million debenture convertible into 1.33 million common shares at $7.50 per share; 3.33 million new common shares at $6 per share; outstanding warrants at $1 each to purchase 4 million additional common shares at $6 per share.
In addition, Portland General has obtained an option from Bonneville to acquire additional common stock totaling 49 percent of Bonneville's outstanding common stock.
Just prior to the Portland General announcement, Bonneville Pacific reported a first fiscal quarter loss of $1.10 million or 9 cents per share on revenues of $28.90 million.
Revenues for the same period last year were $9.95 million for a loss of $1.30 million or 10 cents per share.
Bonneville Chairman Robert L. Wood said the results were expected. He said Bonneville "typically has had uneven quarter to quarter earnings and this trend could continue in the near future until the company accomplishes its stated long-term goals of predictable, recurring revenues."
He said the company expects to accomplish those goals by building larger facilities and retaining significant ownership interests them.