HALIFAX,
May 14, 2012 /CNW/ - Emera Inc. (TSX:
EMA) announced today that it has exchanged certain previously
acquired subscription receipts into 12 million common shares of
Algonquin Power & Utilities Corp. ("Algonquin") (TSX: AQN), at
a price of C$5.00 per common
share.
The subscription receipts were acquired on March 25, 2011 in connection with the previous
announcement by Algonquin that Liberty Energy Utilities Co.
("Liberty Energy"), Algonquin's regulated utility subsidiary, had
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. Algonquin will use the proceeds from the
subscription receipt conversion to partially fund this acquisition,
which is expected to be completed during the second quarter of
2012.
In addition to the 12 million common shares acquired today,
Emera owns 8.523 million previously acquired common shares of
Algonquin, representing a current ownership position of 20.523
million common shares or approximately 13% of Algonquin's issued
and outstanding shares.
In addition to the common shares Emera currently holds, Emera
holds 8.211 million subscription receipts (the "Calpeco
Subscription Receipts") which are exchangeable for common shares in
connection with the previously announced sale to Algonquin of the
49.999% interest held by Emera in California Pacific Electric
Company, LLC ("Calpeco") The Calpeco Subscription Receipts
are exchangeable for common shares of Algonquin on a one-for-one
basis in two tranches as follows: (a) 4.790 million common
shares following regulatory approval of the ownership transfer
which is expected to be received in 2012; and (b) the balance
following completion of Calpeco's first rate case which is expected
to be completed in 2013.
Emera expects to acquire, on a private placement basis, an
additional 17.433 million subscription receipts (the "2012
Subscription Receipts") of Algonquin exchangeable into common
shares. The 2012 Subscription Receipts are expected to be
issued in two tranches: (i) 6.977 million subscription receipts at
a purchase price of $6.45 per
receipt, in connection with the previously announced acquisition by
Algonquin's regulated utility subsidiary of certain gas
distribution assets in the U.S. Midwest; and (ii) 10.456 million
subscription receipts at a purchase price of $5.74 per receipt, in connection with the
previously announced acquisition by Algonquin's power generation
subsidiary of a 51% interest in a 480 MW U.S. wind power
portfolio. The acquisition of the 2012 Subscription Receipts
is subject to applicable regulatory approvals. Algonquin and Emera
are finalizing agreements in respect of the 2012 Subscription
Receipts.
In the event that all of the 17.433 million common shares that
may be issued pursuant to the 2012 Subscription Receipts and the
8.211 million common shares issuable pursuant to the Calpeco
Subscription Receipts are issued, the common shares so issued,
together with the 20.523 million common shares currently held by
Emera, would represent approximately 25% of Algonquin's issued and
outstanding shares.
The common shares acquired today have been acquired for
investment purposes only and the 2012 Subscription Receipts will be
acquired for investment purposes only. Emera has no intention
of acquiring control of Algonquin. Depending upon relevant
economic, market or business conditions prevailing from time to
time, Emera may determine to acquire or to dispose of common shares
of Algonquin in TSX traded or privately negotiated transactions or
otherwise. Under certain agreements previously entered into
with Algonquin, Emera has agreed not to acquire any additional
securities of Algonquin except in accordance with such
agreements.
Forward Looking Information
This news release contains forward looking information. Actual
future results may differ materially. Additional information
related to Emera, including the company's Annual Information Form,
can be found on SEDAR at www.sedar.com or on EDGAR at
www.sec.gov.
About Emera
Emera Inc. is an energy and services company with $6.9 billion in assets and 2011 revenues of
$2.1 billion. The company invests in
electricity generation, transmission and distribution, as well as
gas transmission and utility energy services. Emera's strategy is
focused on the transformation of the electricity industry to
cleaner generation and the delivery of that clean energy to market.
Emera operates throughout northeastern North America, in three Caribbean countries and in California. More than 80% of the company's
earnings come from regulated investments. Emera common and
preferred shares are listed on the Toronto Stock Exchange and trade
respectively under the symbol EMA and EMA.PR.A. Additional
information can be accessed at www.emera.com, www.sedar.com or
www.sec.gov.
SOURCE EMERA INC.