Emera Acquires Additional Subscription Receipts of Algonquin Power

HALIFAX, Sept. 12, 2011 /CNW/ - Emera Inc. (TSX: EMA) announced today that it has acquired, on a private placement basis, 8,211,000 subscription receipts (the "Calpeco Subscription Receipts")  of Algonquin Power & Utilities Corp. ("Algonquin") (TSX: AQN), at a purchase price of C$4.72 per Calpeco Subscription Receipt.

The Calpeco Subscription Receipts were issued in connection with the previously announced sale to Algonquin of the 49.999% interest held by Emera in California Pacific Electric Company, LLC ("Calpeco").  As consideration for the sale of its interest in Calpeco, Emera shall be entitled to receive 8,211,000 common shares of Algonquin, as evidenced by the Calpeco Subscription Receipts.  The Calpeco Subscription Receipts shall be exchangeable for common shares of Algonquin on a one-for-one basis in two tranches as follows:  (a) 4,790,000 common shares following regulatory approval of the ownership transfer (which is expected to be received in either the fourth quarter of 2011 or the first quarter of 2012); and (b) the balance following completion of Calpeco's first rate case (which is expected to be completed in 2012).  The proceeds from this subscription shall be used by Algonquin to fund its' acquisition of Emera's interest in Calpeco.

In addition to holding the Calpeco Subscription Receipts, Emera owns: (i) 8,523,000 common shares of Algonquin, representing approximately 7.15% of Algonquin's currently issued and outstanding common shares; (ii) 12,000,000 previously subscribed for subscription receipts (the "2010 Subscription Receipts") which are exchangeable for common shares on completion of the previously announced acquisitions by Algonquin of Granite State Electric Company, a regulated electric utility, and Energy North Natural Gas Inc., a regulated natural gas utility (these transactions are expected to close in the fourth quarter of 2011); and (iii) 6,890,131 previously subscribed for subscription receipts (the "2011 Subscription Receipts") which are exchangeable for common shares on completion of the previously announced transfer by First Winding Holdings LLC ("First Wind") of a 370 Megawatt portfolio of wind energy projects in the Northeast United States to a new company jointly owned by First Wind, Emera and Algonquin (this transaction is also expected to close in the fourth quarter of 2011).

In the event that all of the 8,211,000 common shares issuable pursuant to the Calpeco Subscription Receipts, 6,890,131 common shares issuable pursuant to the 2011 Subscription Receipts and 12,000,000 common shares issuable pursuant to the 2010 Subscription Receipts are issued, the common shares so issued, together with the 8,523,000 common shares currently held by Emera, would represent approximately 24.35% of Algonquin's issued and outstanding shares.

The Calpeco Subscription Receipts have been acquired for investment purposes only, and 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 a growing energy and services company with $6.6 billion in assets and 2010 revenues of $1.6 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.


For further information:


Jill MacDonald, CA, Manager, Investor Relations, (902) 428-6486

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