MONTREAL, April 2 /CNW Telbec/ - Abitibi-Consolidated Inc. announced
today that it has closed the transaction with the Caisse de dépôt et placement
du Québec, announced by the Company in January 2007, creating ACH Limited
Partnership, a joint-venture for the Company's Ontario hydroelectric
generation facilities. Abitibi-Consolidated has retained a 75% equity interest
in the joint-venture and the Caisse has acquired a 25% equity interest. The
Caisse has also provided to ACH Limited Partnership a 10-year unsecured term
loan of $250 million, non-recourse to Abitibi-Consolidated, to partially fund
the acquisition of the facilities.
The transaction, on a consolidated basis, has yielded gross proceeds of
$297.5 million to Abitibi-Consolidated.
ACH Limited Partnership encompasses eight hydroelectric facilities
located in Ontario, representing an aggregate installed capacity of 136.8 MW
and a normalised annual generation of approximately 828 GWh.
ACH Limited Partnership is intended to be Abitibi-Consolidated's growth
vehicle in energy generation. Abitibi-Consolidated's substantial ownership
interest in the joint-venture reflects the ongoing strategic importance of its
electricity generation assets. Abitibi-Consolidated has entered into
agreements with ACH Limited Partnership by virtue of which it will continue to
operate and manage the facilities. Scotia Capital and CIBC World Markets have
advised the Company in regards to this transaction.
Abitibi-Consolidated is a global leader in newsprint and commercial
printing papers as well as a major producer of wood products, serving clients
in some 70 countries from its 45 operating facilities. Abitibi-Consolidated is
among the largest recyclers of newspapers and magazines in North America,
diverting annually approximately 1.7 million tonnes of waste paper from
landfills. It also ranks first in Canada in terms of total certified
woodlands. Abitibi-Consolidated shares are traded on the Toronto Stock
Exchange (TSX: A) and on the New York Stock Exchange (NYSE: ABY).
For further information:
For further information: Investors: Francesco Alessi, Vice-President,
Investor Relations and Taxation, (514) 394-2341,
firstname.lastname@example.org; Media and others: Denis Leclerc, Director,
Public Affairs, (514) 394-3601, email@example.com