OAKVILLE, ON, Feb. 22, 2013 /CNW/ - Algonquin Power & Utilities Corp.
("APUC") (TSX: AQN) is pleased to announce that it has received all
federal and state regulatory approvals required to complete the
acquisition of the regulated natural gas distribution utility assets
located in Georgia. The acquisition was originally announced in August
2012.
The regulated natural gas distribution utility provides natural gas
service to approximately 64,000 customers in Georgia.
Closing of the acquisition is expected to occur on or about April 1,
2013. Total consideration for the transaction, originally estimated at
U.S. $140.7 million, represents a multiple of net regulatory assets of
approximately 1.1x. The final purchase price is subject to closing
adjustments including final determination of net regulatory assets
acquired on the date of closing.
The cost of the acquisition will be funded using approximately 50% each
of equity and debt. In connection with this acquisition, Emera has
agreed to acquire subscription receipts for 3,960,000 common shares of
APUC at a price of $7.40 representing total proceeds of approximately
$29 million. These shares are being issued in the context of the
existing Strategic Investment Agreement which contemplates Emera's
investment in APUC of up to 25%. The debt portion of the acquisition
is expected to be arranged under Liberty Utilities' existing long term
bond platform.
"We are pleased to have achieved this significant step in the approval
process for the acquisition of another high quality regulated
distribution utility and are looking forward to doing business in
Georgia's supportive regulatory environment," commented Ian Robertson,
Chief Executive Officer of APUC. "We are also happy to continue
building on the long term strategic relationship we have with Emera."
"Algonquin has a proven growth strategy which complements Emera's long
term growth strategy," stated Chris Huskilson Chief Executive Officer
of Emera Inc. "Our 25% interest in Algonquin represents a meaningful
investment for Emera shareholders in a growth focused power and
utility corporation."
About Algonquin Power & Utilities Corp.
Algonquin Power & Utilities Corp. owns and operates a diversified $3.0
billion portfolio of regulated and non-regulated utilities in North
America. The company's regulated utility business is committed to
provide water, electricity and natural gas utility services to over
465,000 customers through a nationwide portfolio of regulated
generation, transmission and distribution utility systems. The
company's non-regulated electric generation subsidiary owns or has
interests in renewable energy and thermal energy facilities
representing more than 1,100 MW of installed capacity. Algonquin Power
& Utilities Corp. delivers continuing growth through an expanding
pipeline of renewable power and clean energy projects, organic growth
within its regulated utilities and the pursuit of accretive acquisition
opportunities. Common shares and preferred shares are traded on the
Toronto Stock Exchange under the symbols AQN and AQN.PR.A respectively.
Visit Algonquin Power and Utilities at www.AlgonquinPowerandUtilities.com and follow us on Twitter @AQN_Utilities.
Caution Regarding Forward-Looking Information
Certain statements included in this news release contain information
that is forward-looking within the meaning of certain securities laws,
including information and statements regarding prospective results of
operations, financial position or cash flows. These statements are
based on factors or assumptions that were applied in drawing a
conclusion or making a forecast or projection, including assumptions
based on historical trends, current conditions and expected future
developments. Since forward-looking statements relate to future events
and conditions, by their very nature they require making assumptions
and involve inherent risks and uncertainties. APUC cautions that
although it is believed that the assumptions are reasonable in the
circumstances, these risks and uncertainties give rise to the
possibility that actual results may differ materially from the
expectations set out in the forward-looking statements. Material risk
factors include those set out in the management's discussion and
analysis section of APUC's most recent annual report and quarterly
report, and APUC's Annual Information Form. Given these risks, undue
reliance should not be placed on these forward-looking statements,
which apply only as of their dates. Other than as specifically required
by law, APUC undertakes no obligation to update any forward-looking
statements or information to reflect new information, subsequent or
otherwise.
SOURCE: Algonquin Power & Utilities Corp.
Algonquin Power & Utilities Corp.
Kelly Castledine
Investor Relations
(905) 465-4500