Emera Inc. (TSX:EMA) today announced it has entered into a
subscription agreement with Algonquin Power & Utilities Corp (TSX:AQN)
(“Algonquin”) under which Emera has subscribed for 7,865,170
subscription receipts (“Odell Subscription Receipts”) at a price of
$8.90 per subscription receipt, for an aggregate subscription price of
$70 million. Each subscription receipt represents a right to one common
share of Algonquin.
The investment is made under the Strategic Investment Agreement Emera
has with Algonquin, and is in support of Algonquin’s acquisition of the
Odell Wind Farm project (“Odell”) in Minnesota, announced yesterday.
Under the subscription agreement, the Odell Subscription Receipts will
become convertible into common shares of Algonquin following the closing
of Algonquin’s acquisition of Odell. The agreement specifies that Emera
is not permitted to convert the Odell Subscription Receipts into common
shares of Algonquin unless all necessary regulatory approvals are
obtained, which include the request for approval in connection with
Emera’s ownership interest in Algonquin, which is currently before the
Maine Public Utilities Commission. Conversion of Odell Subscription
Receipts into common shares would also be conditional on Emera’s
holdings not exceeding 25% of the outstanding shares of Algonquin at the
time of conversion.
In addition to holding the Odell Subscription Receipts, Emera owns
50,126,766 common shares of Algonquin, currently representing
approximately 24.1% of Algonquin's issued and outstanding common shares.
The Odell Subscription Receipts have been acquired for investment
purposes only, and 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, including the Strategic
Investment Agreement announced on April 29, 2011, Emera has agreed not
to acquire any additional securities of Algonquin except in accordance
with such agreements.
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
at www.sedar.com.
About Emera
Emera Inc. is geographically diverse energy and services company
headquartered in Halifax, Nova Scotia with $9.07 billion in assets and
2013 revenues of $2.2 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 investments
throughout northeastern North America, and in four Caribbean countries.
Approximately 80% of the company's reported net income in 2013 came 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, EMA.PR.C, EMA.PR.E, and EMA.PR.F. Additional Information can
be accessed at www.emera.com
or at www.sedar.com.
![](http://cts.businesswire.com/ct/CT?id=bwnews&sty=20140905005436r1&sid=ntxv4&distro=nx&lang=en)
Copyright Business Wire 2014