TORONTO, Jan. 20 /CNW/ - Yesterday, the Ontario Energy Board (the Board)
issued an oral Decision approving an application by the Town of Essex (Essex)
to acquire all of the remaining shares in E.L.K. Energy Inc. (ELK) effective
January 31, 2009.
Essex currently holds 38% of the shares in ELK. The remaining shares are
held by the Town of Kingsville, a 38% shareholder and the Town of Lakeshore, a
In its Decision, the Board considered three main issues.
The first issue concerns the debt-equity ratio of approximately 74/26
resulting from the transaction, however, the Board accepted Essex's proposed
actions that will result in a debt/equity ratio of approximately 61/39.
The second concerns post-closing conditions that provide certain
protection to employees against termination or relocation. Upon reviewing the
language, the Board noted Essex's board of directors can still make business
decisions in the ordinary course without being restrained by these conditions.
The Board also noted the transaction involves the payment of an
acquisition premium by Essex. The Board has accepted the applicant's
assurances that none of the acquisition premium would flow through to the rate
The Board's approval has been granted on the basis of the assurances
provided by Essex, noted above.
The Ontario Energy Board regulates the province's electricity and natural
gas sectors in the public interest. It envisions a viable and efficient energy
sector with informed consumers, and works towards this vision through
regulatory processes that are effective, fair and transparent.
For more information on the Board, please visit our website at
www.oeb.gov.on.ca or contact the Consumer Relations Centre at 416-314-2455 or
toll-free at 1-877-632-2727.
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For further information:
For further information: Vanda Wall, Ontario Energy Board, (416)