Canadian Utilities Sells Canadian Generation Business for $835 Million
May 27, 2019
Canadian Utilities Limited (CU), an ATCO company, announced today that it has entered into definitive agreements to sell its entire Canadian fossil fuel-based electricity generation portfolio for aggregate proceeds of approximately $835 million, subject to customary closing adjustments. The sale concludes a strategic evaluation announced September 13, 2018.
An agreement with Heartland Generation Ltd., an affiliate of Energy Capital Partners, includes 11 partly or fully owned natural gas-fired and coal-fired electricity generation assets located in Alberta, British Columbia, and Ontario, with a combined generating capacity of approximately 2,100 megawatts (MW).
The sale is expected to close in the second half of 2019, subject to receipt of regulatory approvals and satisfaction of other customary closing conditions. RBC Capital Markets and J.P. Morgan are acting as joint financial advisors to CU.
In a separate transaction, CU has entered into an agreement to sell its 50 per cent ownership interest in the 260 MW Cory Cogeneration Station, located outside Saskatoon, Sask., to SaskPower International.
“These assets provide reliable and affordable energy to customers across Canada and I want to thank our employees for their commitment and dedication to operating these assets to the highest standards,” said Siegfried Kiefer, President & Chief Executive Officer, Canadian Utilities. “We are focused on building a globally diversified portfolio of energy-related infrastructure assets. Continually evaluating our business model and strategies ensures we are well-positioned to capture opportunities in markets at home and abroad.”
“We are impressed by the portfolio’s high-quality assets and strong operating history. We look forward to partnering with the portfolio’s talented management team and employees and to continuing to provide a high level of service to the portfolio’s offtakers and customers,” said Tyler Reeder, Managing Partner, Energy Capital Partners.
The sale agreements do not include ASHCOR Technologies, the Oldman River Hydro Facility, or international projects, which are being retained by CU.
Following the closing of the sale agreements, CU will have approximately 250 MW of electricity generation assets located in Canada, Mexico and Australia.