MONTREAL, Feb. 12, 2015 /CNW Telbec/ - Valener Inc. (Valener) (TSX: VNR) is announcing that its board of directors has declared a quarterly dividend of $0.26 per common share for the quarter ended March 31, 2015, payable on April 15, 2015, to the common shareholders of record at the close of business on March 31, 2015. On an annualized basis, this will increase the dividend from $1.00 to $1.04 per common share, or 4%. In addition, the board of directors has set an annual dividend growth target of 4% for the next three fiscal years, i.e., until fiscal 2018.
The board of directors has also declared a quarterly dividend of $0.271875 per Series A preferred share for the period of January 16, 2015 to April 15, 2015, payable on April 15, 2015 to the preferred shareholders of record at the close of business on April 9, 2015.
Both dividends have been designated as eligible dividends for Canadian tax purposes.
Dividend Reinvestment Plan
Valener offers a Dividend Reinvestment Plan (the Plan) pursuant to which eligible common shareholders may request that the cash dividends paid on their common shares be automatically reinvested, without brokerage or administrative fees, into additional common shares of Valener.
In the context of the dividend increase, the board of directors approved, for the dividend payable on April 15, 2015, the reinvestment of dividends into additional common shares by way of an issuance of new common shares at a 2% discount compared to the weighted average price for the five trading days immediately preceding the dividend payment date (compared to 5% the previous quarter).
The Plan details and enrollment process are provided on Valener's website (www.valener.com) in the "Stock Information" section of the "Investors" page.
Overview of Valener
Valener Inc. is a public company that is 100% owned by the public investor and serves as the investment vehicle in Gaz Métro. Through its investment in Gaz Métro, Valener offers its shareholders a solid investment in a diversified and largely regulated energy portfolio in Quebec and Vermont. As a strategic partner, Valener, on the one hand, contributes to Gaz Métro's growth and, on the other hand, invests in wind power production in Quebec together with Gaz Métro. Valener favours energy sources and uses that are innovative, clean, competitive and profitable. Valener's common shares and preferred shares are listed on the Toronto Stock Exchange under the "VNR" trading symbol for common shares and under the "VNR.PR.A" symbol for Series A preferred shares. www.valener.com
Cautionary note regarding forward-looking statements
Certain statements contained in this press release may be forward-looking within the meaning of applicable securities legislation. Such forward-looking statements reflect the intentions, plans, expectations and opinions of the management of Gaz Métro inc., acting in its capacity as General Partner of Gaz Métro Limited Partnership (Gaz Métro), acting as manager of Valener (the Management) and are based on information currently available to the Management and on assumptions about future events. These forward-looking statements include the statement on the setting of an anticipated annual growth target for the dividend on Valener's common shares for the next three fiscal years, in particular until 2018. The forward-looking statements involve known and unknown risks and uncertainties and other factors beyond the control of Valener or Gaz Métro. A number of factors could cause the actual results of Valener or of Gaz Métro to differ significantly from current expectations as they are described in the forward-looking statements, including but not limited to the general nature of the aforementioned, terms of decisions rendered by regulatory agencies, uncertainty about obtaining approvals from regulatory agencies and interested parties to carry out activities in Gaz Métro's various business segments and the socio-economic risks associated with such activity, the competitiveness of natural gas in relation to other energy sources in the context of falling global oil prices, the reliability or costs of natural gas supply and electricity supply, the integrity of the natural gas and electricity distribution systems, the evolution and profitability of Seigneurie de Beaupré Wind Farms 2 and 3 General Partnership and Seigneurie de Beaupré Wind Farm 4 General Partnership and other development projects, the ability for Valener to generate sufficient cash to support its anticipated target annual dividend growth rate on its common shares, the ability to complete attractive acquisitions and the related financing and integration aspects, the ability to complete new development projects, the ability to secure future financing, general economic conditions, exchange rate and interest rate fluctuations, weather conditions and other factors described in the Risk Factors Relating to Valener section and in the Risk Factors Relating to Gaz Métro section of Valener's Management's Discussion and Analysis for the fiscal year ended September 30, 2014 and in Valener's and Gaz Métro's disclosure filings.
Although these forward-looking statements are based upon what Management believes to be reasonable assumptions, Valener and Gaz Métro cannot assure investors that actual results will be consistent with these forward-looking statements. These forward-looking statements are made as of the date of this press release, and Valener and Gaz Métro assume no obligation to update or revise them to reflect new events or circumstances, except as required pursuant to applicable securities laws. Readers are cautioned not to place undue reliance on these forward-looking statements. Please consult the complete version of the Cautionary Note Regarding Forward-Looking Statements as well as a description of the relevant assumptions and risk factors likely to affect Valener's and Gaz Métro's actual results are provided in Valener's and Gaz Métro's MD&A for the fiscal year ended September 30, 2014 and for the quarter ended December 31, 2014 and in Valener's and Gaz Métro's disclosure filings. These documents are available on SEDAR at www.sedar.com.
SOURCE Valener Inc.
For further information: Investors and Analysts: Caroline Warren, Investor Relations, 514-598-3324; Media: Marie-Christine Demers, Public Affairs and Communications, 514-598-3449, www.twitter.com/gazmetro, www.gazmetro.com/salledepresse; Marc Poisson, NATIONAL Public Relations, 514-843-2366