CALGARY, Alberta, May 27, 2019 (GLOBE NEWSWIRE) -- Canadian Utilities Limited (TSX: CU, CU.X)
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.
With approximately 5,000 employees and assets of $22 billion, Canadian Utilities Limited is an ATCO company. Canadian Utilities Limited is a diversified global energy infrastructure corporation delivering service excellence and innovative business solutions in Electricity (electricity generation, transmission and distribution), Pipelines & Liquids (natural gas transmission, distribution and infrastructure development; and energy storage and industrial water solutions) and Retail Energy (electricity and natural gas retail sales). More information can be found at www.canadianutilities.com
| Investor Inquiries: | Media Inquiries: |
| D.A. (Dennis) DeChamplain | Sue Watson |
| Senior Vice President & | Manager, Corporate Communications |
| Chief Financial Officer | 403 828 3550 |
| 403 292 7502 | |
Forward-Looking Information:
Certain statements contained in this news release may constitute forward-looking information. Forward-looking information is often, but not always, identified by the use of words such as “anticipate”, “plan”, “estimate”, “expect”, “may”, “will”, “intend”, “should”, and similar expressions.
Forward-looking information involves known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking information.
The Company’s actual results could differ materially from those anticipated in this forward-looking information as a result of regulatory decisions, competitive factors in the industries in which the Company operates, prevailing economic conditions, and other factors, many of which are beyond the control of the Company.
The Company believes that the expectations reflected in the forward-looking information are reasonable, but no assurance can be given that these expectations will prove to be correct and such forward-looking information should not be unduly relied upon.
Any forward-looking information contained in this news release represents the Company’s expectations as of the date hereof and is subject to change after such date. The Company disclaims any intention or obligation to update or revise any forward-looking information whether as a result of new information, future events or otherwise, except as required by applicable securities legislation.
PDF available: http://ml.globenewswire.com/Resource/Download/c8877b13-6392-4084-b25e-7f7ab92af874
