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.
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.
For further information: For further information: 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