Emera Increases Investment in Algonquin Power & Utilities Corp.
HALIFAX, Nova Scotia--(BUSINESS WIRE)--Jul. 31, 2012--
Emera Inc. (TSX: EMA) announced today that it has exchanged
certain previously acquired subscription receipts into 6.977 million
common shares of Algonquin Power & Utilities Corp. ("Algonquin") (TSX:
AQN), at a price of C$6.45 per common share, which was determined in May
The subscription receipts were acquired on July 27, 2012, in connection
with the previously announced acquisition by Algonquin’s regulated
utility subsidiary of certain gas distribution assets in the U.S.
Midwest. The acquisition was originally announced in May 2011 and final
regulatory approvals were received in June 2012. Algonquin will use the
proceeds from the subscription receipt conversion to partially fund this
acquisition, which is expected to be completed during the third quarter
In addition to the 6.977 million common shares acquired today, Emera
owns 23.14 million previously acquired common shares of Algonquin,
representing a current ownership position of 30.11 million common shares
or approximately 17.85% of Algonquin’s issued and outstanding shares.
In addition to the 30.11 million common shares Emera currently holds,
Emera holds 8.211 million subscription receipts (the "Calpeco
Subscription Receipts") which are exchangeable for common shares in
connection with the previously announced sale to Algonquin of the
49.999% interest held by Emera in California Pacific Electric Company,
LLC ("Calpeco"). The Calpeco Subscription Receipts are exchangeable for
common shares of Algonquin on a one-for-one basis in two tranches as
follows: (a) 4.790 million common shares following regulatory approval
of the ownership transfer; and (b) the balance following completion of
Calpeco's first rate case which is expected to be completed in 2013.
Regulatory approval of the ownership transfer has been received and it
is expected the first tranche of the subscription receipts related to
this transaction will be exercised in Q3 2012.
Emera also holds 7.84 million subscription receipts at a purchase price
of $5.74 per receipt (the “2012 Subscription Receipts”), in connection
with the previously announced acquisition by Algonquin’s power
generation subsidiary of a 51% interest in a 480 MW U.S. wind power
In the event that all of the 7.84 million common shares that may be
issued pursuant to the 2012 Subscription Receipts and the 8.211 million
common shares issuable pursuant to the Calpeco Subscription Receipts are
issued, together with the 30.11 million common shares currently held by
Emera, Emera would own approximately 25% of Algonquin's issued and
outstanding shares. The acquisition of Algonquin shares is subject to
regulatory approval from the Maine Public Utilities Commission (“MPUC”),
which has limited Emera’s ownership in Algonquin to 20%, with additional
investment requiring specific approval. On June 25, 2012, Emera
requested MPUC approval to increase its ownership in Algonquin to 25%.
The common shares acquired today have been acquired for investment
purposes only. 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
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
or on EDGAR at www.sec.gov.
Emera Inc. is an energy and services company with $7.0 billion in assets
and 2011 revenues of $2.1 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 has interests 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, EMA.PR.A,
and EMA.PR.C. Additional information can be accessed at www.emera.com,
Source: Emera Inc.
Jill MacDonald, CA , 902-428-6486
Sasha Irving, 902-229-5104