UPDATE 2-Boralex nears trust buy after unitholder suit rejected

* Boralex says safeguard order sought by O’Leary rejected

* Says can now complete acquisition of Boralex Power

* O’Leary says legality of bid remains contested

* Boralex shares up 5 pct
(Rewrites; adds O’Leary Funds comments, Timeline, updates
shares)

BANGALORE, Nov 1 (BestGrowthStock) – Boralex Inc (BLX.TO: ) said a
superior court in Canada dismissed a unitholder suit seeking to
block its C$227 million takeover of Boralex Power Income Fund
(BPT_u.TO: ), the trust it manages, raising the possibility that
the 6-month takeover saga is nearing its end.

While about 86 percent of Boralex Power unitholders have
agreed to Boralex Inc’s offer, unitholder O’Leary Funds
Management LP, with a 9 percent stake, had sued to prevent the
deal from going through, saying the offer undervalued the
trust.

Boralex said in a statement that it would now be able to
complete its acquisition of the remaining units of the fund by
way of a business combination.

However, O’Leary Funds said in a statement: “Although the
superior court declined to issue a temporary injunction, the
legality of the Boralex bid and any compulsory acquisition
remains contested.”

For a timeline on the deal, double-click [ID:nSGE6820HS]

The fund house also said that it continues to believe that
any compulsory acquisition will be illegal, and it shall pursue
the appropriate measures to protect the rights of minority
shareholders.

Versant Partners upgraded Boralex to “buy,” saying the
court decision could create momentum for Boralex and that the
combined entity is greater than a sum of its parts.

The brokerage also raised its target on Boralex stock to
C$11 from C$10.

“The acquisition of Boralex Power strengthens Boralex,
thanks to greater diversification both geographically and by
power source,” the brokerage said in a note.

Late October, Boralex Power said about 86 percent of its
unitholders had voted in favor of the Boralex Inc offer and
supported Boralex’s proposal to lower the threshold of units
required for the deal to go through at a special meeting.

Boralex shares have gained more than 7 percent since
Boralex Power unitholders voted in favor of its offer on Oct.
21. They were up about 3 percent to C$8.63 in late morning
trade Monday on the Toronto Stock Exchange. They touched a high
of C$8.85 earlier in the session.

Boralex Power units were flat at C$5.07.
(Reporting by Ashutosh Joshi in Bangalore; Editing by
Unnikrishnan Nair)

UPDATE 2-Boralex nears trust buy after unitholder suit rejected