Emera increases investment in Algonquin Power & Utilities Corp.
09 Décembre 2010 - 3:23PM
PR Newswire (Canada)
HALIFAX, Dec. 9 /CNW/ -- HALIFAX, Dec. 9 /CNW/ - (EMA-TSX): Emera
Inc. announced today that it is purchasing subscription receipts
("subscription receipts") for 12 million Algonquin Power &
Utilities Corp. ("APUC") (TSX: AQN) common shares at a purchase
price of $5.00 per share. The $5.00 per share price represents a
premium of approximately 5% to the APUC closing price on December
8, 2010. The subscription receipts relate to the announcement today
by APUC that Liberty Energy Utilities Co. ("Liberty Energy"),
APUC's regulated utility subsidiary, has entered into agreements to
acquire all issued and outstanding shares of Granite State Electric
Company ("Granite State"), a regulated electric utility, and Energy
North Natural Gas Inc. ("Energy North"), a regulated natural gas
utility from National Grid USA ("National Grid") for total
consideration of US$285.0 million. Proceeds from the subscription
receipts will be used to finance a portion of this acquisition
which is expected to close in late 2011. Emera's subscription
receipts will be executed at that time. In 2009 Emera entered into
a subscription agreement with Algonquin under which Emera would
subscribe for 8.5 million APUC common shares (representing 9.9% of
APUC at that time) upon the conclusion of the California Pacific
Electric Company ("CalPECo") utility acquisition. Emera was
entitled under the Subscription Agreement to purchase additional
common equity to bring its interest to a total of 15%, including
anti-dilution rights to maintain 15%. This transaction has not yet
closed. On the closing of the two subscriptions, Emera's interest
in APUC will be approximately 15%. The purchase of the subscription
receipts is also subject to applicable regulatory approval. This
transaction is accretive and will further the strategic partnership
contemplated by Emera when it entered into the Agreements made with
Algonquin in 2009. The subscription receipts will be acquired for
investment purposes only, and Emera Inc. has no current intention
of acquiring control of APUC. Depending upon relevant economic,
market or business conditions prevailing from time to time, Emera
Inc. may determine to acquire or to dispose of common shares of
APUC in TSX traded or privately negotiated transactions or
otherwise. Cautionary Statement Regarding Forward-Looking
Information: This release contains forward-looking information and
should not be read as a guarantee of future events, performance or
results, and will not necessarily be an accurate indication of
whether, or the times at which, such events, performance or results
will be achieved. Emera disclaims any intention or obligation to
update or revise any forward-looking information, whether as a
result of new information, future events or otherwise, except as
required under applicable securities laws. About Emera: Emera Inc.
(EMA and EMA.PR.A -TSX) is an energy and services company with $5.8
billion Canadian dollars in assets. Electricity is Emera's core
business. Approximately 94% of Emera's revenues are earned by Nova
Scotia Power Inc (NSPI), Bangor Hydro Electric Company (BHE) and
the Brunswick Pipeline. NSPI and BHE are wholly-owned regulated
electric utilities which together serve 603,000 customers. The
Brunswick Pipeline is a 145 km gas pipeline in New Brunswick. Emera
also owns 19% of St. Lucia Electricity Services Limited, which
serves more than 50,000 customers on the Caribbean island of St.
Lucia, 25% of Grand Bahama Power Company which serves 19,000
customers on the Caribbean island of Grand Bahama and 38% of Light
& Power Holdings which serves 120,000 customers on the
Caribbean island of Barbados through its regulated electric
utility, The Barbados Light and Power Company. In addition to its
electric utility investments, Emera owns Bayside Power, a 260 MW
gas-fired power plant in Saint John, New Brunswick; Emera Energy
Services, a physical natural gas and power marketing and asset
management business; a joint venture interest in Bear Swamp, a 600
megawatt pumped storage hydro-electric facility in northern
Massachusetts; a 12.9% interest in the Maritimes & Northeast
Pipeline; and an 8.2% interest in Open Hydro. Visit Emera on the
web at www.emera.com About Algonquin Power & Utilities Corp.
Through its distinct operating subsidiaries, APUC owns and operates
a diversified portfolio of approximately $1 billion of clean
renewable electric generation and sustainable utility distribution
businesses in North America. Algonquin Power Co., APUC's electric
generation subsidiary, includes 45 renewable energy facilities and
14 thermal energy facilities representing more than 480 MW of
installed capacity. Liberty Water Co., APUC's water utility
subsidiary, provides regulated utility services to more than 70,000
customers with a portfolio of 19 water distribution and wastewater
treatment utility systems. Pursuant to previously announced
agreements, APUC, through its electric utility Liberty Energy, is
committed to acquiring CalPECo, the California based regulated
utility assets of NV Energy, Granite State Electric Company, a New
Hampshire electric distribution company, and Energy North Natural
Gas Inc., a regulated natural gas distribution utility, which in
total serve over 173,000 customers. APUC and its operating
subsidiaries deliver continuing growth through an expanding
pipeline of greenfield and expansion renewable power and clean
energy projects, organic growth within its regulated utilities and
the pursuit of accretive acquisition opportunities. APUC's common
shares and convertible debentures are traded on the Toronto Stock
Exchange under the symbols AQN, AQN.DB, AQN.DB.A and AQN.DB.B.
Visit Algonquin Power & Utilities Corp. on the web at
www.AlgonquinPowerandUtilities.com. including a copy of the report
to be filed by Emera under applicable Canadian securities laws in
connection with the information in this press release, Contact:
Emera - Investor Relations: Jennifer Nicholson, CA, Senior
Director, Stakeholder Relations, (902) 223-0461; Jill MacDonald,
CA, Manager, Investor Relations, (902) 489-6876; Emera - Media
Relations: Sasha Irving, Director, Corporation Communications,
(902) 229-5104
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