Canadian Utilities Limited Transfers ATCO Structures & Logistics Ownership Interest to ATCO Ltd.

ATCO Ltd. (TSX:ACO.X) (TSX:ACO.Y), Canadian Utilities Limited (TSX:CU) (TSX:CU.X)

ATCO Ltd. and its subsidiary, Canadian Utilities Limited, today announced an agreement to transfer Canadian Utilities Limited’s 24.5 per cent ownership interest in ATCO Structures & Logistics Ltd. to ATCO Ltd. As a result of the transaction, ATCO will own 100 per cent of the shares of ATCO Structures & Logistics.

Pursuant to the transaction, ATCO will pay approximately $140 million in cash to Canadian Utilities for its 24.5 per cent interest in ATCO Structures & Logistics using ATCO’s cash reserves. Canadian Utilities expects minimal tax and earnings impacts arising from the transaction, subject to year-end adjusting entries.

The transaction simplifies ATCO’s ownership structure, while allowing Canadian Utilities to redeploy capital as part of its financing plan for its large investment program in core regulated and long-term contracted energy infrastructure asset base.

The transaction was reviewed by an independent financial advisor, Ernst & Young LLP, who has provided a fairness opinion that the financial consideration to be paid and received pursuant to the transaction is fair, from a financial point of view. The transaction is subject to the completion of documentation and receipt of all necessary approvals which are expected to be completed by December 31, 2017.

Canadian Utilities will continue to wholly own its core investments in the Electricity and Pipelines & Liquids Global Business Units, as well as its international operations in Australia and Latin America. ATCO will wholly own the Structures & Logistics Global Business Unit and all its foreign operations, as well as its 52.7 per cent interest in Canadian Utilities.

With approximately 7,000 employees and assets of $21 billion, ATCO is a diversified global corporation delivering service excellence and innovative business solutions in Structures & Logistics (workforce housing, innovative modular facilities, construction, site support services, and logistics and operations management); Electricity (electricity generation, transmission, and distribution); Pipelines & Liquids (natural gas transmission, distribution and infrastructure development, energy storage, and industrial water solutions); and Retail Energy (electricity and natural gas retail sales). More information can be found at www.ATCO.com.

Media & Investor Inquiries:

D.A. (Dennis) DeChamplain Senior Vice President & Chief Financial Officer 403-292-7502

Forward-Looking Information:
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