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Shares of Atlantic Power Corp (NYSE: AT), an independent power producer, have gained over 40% premarket after it was announced that I Squared Capital will take over the company in a deal worth $961 million.

I Squared Capital will acquire Atlantic’s outstanding common shares, convertible debentures, and the outstanding preferred shares and medium-term notes of certain Atlantic subsidiaries.

Shareholders will receive $3.03 per share in cash, representing a 48% premium to the 30-day volume-weighted average price per common share. The total value of the deal is approximately $961 million.

“We are pleased to announce this transaction with I Squared Capital. The independent directors of the Board, with the assistance of our financial and legal advisors, carefully analyzed I Squared Capital's offer, and after extensive negotiation and thorough consideration, concluded that the agreement is in the best interests of Atlantic Power” stated by Chairman of Atlantic Power Board of Directors, Kevin T. Howell.

Furthermore, Atlantic Power’s 6.00% Series E Convertible Unsecured Subordinated Debentures due January 31st, 2025 will be converted into common shares on the transaction's closing.

The transaction is expected to close in Q2 2021.

President and CEO of Atlantic Power James J. Moore Jr stated “The agreement also provides for the acquisition of our other public securities for cash, delivering a positive outcome for all of our security holders. Completion of this transaction is conditioned upon the approval of these holders, as well as other required approvals.”

Atlantic Power’s share price is currently trading at $2.96, after a substantial 40.71% move higher.

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