* Opposes Boralex bid for Boralex Power Income Trust
* Says revised offer inadequate
* Not to tender 1.9 mln Boralex Power units
Aug 24 (Reuters) - Canada's EdgePoint Wealth Management Inc said it will not tender its 1.9 million units of Boralex Power Income Fund to the revised offer by Boralex Inc and called the offer 'inadequate'.
Alternative power producer Boralex, which manages the operations of Boralex Power Income Fund, has offered to pay cash equivalent of C$5 per Boralex Power unit in the form of convertible Boralex debentures, to take control of the income trust.
In May, Boralex offered an annual interest rate of 6.25 percent on convertible unsecured subordinated Boralex debentures, but raised it to 6.75 percent last month.
'The current C$5 offer for each Boralex unit is in the form of convertible, unsecured, subordinated debentures of Boralex. EdgePoint believes these debentures are worth materially less than C$5 per Boralex unit,' the investment manager said in a statement.
Earlier this month, another investor O'Leary Funds Management LP announced its opposition to the Boralex offer and called for a regulatory investigation of the proposed deal.
The offer by Boralex expires on September 10.
Units of Boralex Power closed at C$4.60, while shares of Boralex ended at C$7.77 Tuesday on the Toronto Stock Exchange.
(Reporting by Ashutosh Joshi in Bangalore; Editing by Vyas Mohan) Keywords: BORALEX/ (ashutosh.joshi@thomsonreuters.com; within U.S. +1 646 223 8780; outside U.S. +91 80 4135 5800; Reuters Messaging: ashutosh.joshi.reuters.com@reuters.net) COPYRIGHT Copyright Thomson Reuters 2010. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.
* Says revised offer inadequate
* Not to tender 1.9 mln Boralex Power units
Aug 24 (Reuters) - Canada's EdgePoint Wealth Management Inc said it will not tender its 1.9 million units of Boralex Power Income Fund to the revised offer by Boralex Inc and called the offer 'inadequate'.
Alternative power producer Boralex, which manages the operations of Boralex Power Income Fund, has offered to pay cash equivalent of C$5 per Boralex Power unit in the form of convertible Boralex debentures, to take control of the income trust.
In May, Boralex offered an annual interest rate of 6.25 percent on convertible unsecured subordinated Boralex debentures, but raised it to 6.75 percent last month.
'The current C$5 offer for each Boralex unit is in the form of convertible, unsecured, subordinated debentures of Boralex. EdgePoint believes these debentures are worth materially less than C$5 per Boralex unit,' the investment manager said in a statement.
Earlier this month, another investor O'Leary Funds Management LP announced its opposition to the Boralex offer and called for a regulatory investigation of the proposed deal.
The offer by Boralex expires on September 10.
Units of Boralex Power closed at C$4.60, while shares of Boralex ended at C$7.77 Tuesday on the Toronto Stock Exchange.
(Reporting by Ashutosh Joshi in Bangalore; Editing by Vyas Mohan) Keywords: BORALEX/ (ashutosh.joshi@thomsonreuters.com; within U.S. +1 646 223 8780; outside U.S. +91 80 4135 5800; Reuters Messaging: ashutosh.joshi.reuters.com@reuters.net) COPYRIGHT Copyright Thomson Reuters 2010. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.