- Purchase price of $959 million USD
($1,286 million CAD) for shares plus acquired debt, for total
enterprise value of $1.3 billion USD ($1.8 billion CAD)
- Fully achieves the targeted asset sale
component of Emera’s three-year funding plan and proceeds will be
used to support Emera’s capital investment opportunities within its
regulated utility businesses and reduce corporate level debt
- Marks the advancement of ENMAX’s growth
strategy through the expansion of its regulated business operations
in North America, leading to a 50% increase in regulated rate
base
- Transitions ENMAX to an approximately
$8.0 billion (assets), deeply experienced regulated transmission
and distribution utility operator with an excellent reputation for
customer satisfaction, safety and reliability
- Subject to certain conditions,
including regulatory approvals, and anticipated to close late in
2019
Emera Inc. (TSX:EMA) and ENMAX Corporation (ENMAX) today
announced that they have entered into a definitive agreement in
which Emera has agreed to sell to ENMAX its interest in Emera
Maine, its regulated electric transmission and distribution company
in Maine, for a purchase price of $959 million USD ($1,286 million
CAD). Including the assumed debt, aggregate enterprise value is
forecasted to be approximately $1.3 billion USD ($1.8 billion CAD)
on closing.
This press release features multimedia. View
the full release here:
https://www.businesswire.com/news/home/20190325005408/en/
This transaction is part of Emera’s previously announced
three-year funding plan and together with the previously announced
sale of its New England Gas Generation portfolio will, on closing,
fully achieve the targeted asset sale component of the plan. Upon
closing of these transactions Emera will have raised approximately
$2.1 billion CAD of equity proceeds which will be used to reduce
Emera corporate level debt and support its $6.5 billion CAD
three-year regulated capital program.
“We are very pleased with the progress we’ve made on optimizing
our portfolio and, upon closing, proceeds raised through select
asset sales will give us greater financial flexibility as we fund
our continued growth,” said Scott Balfour, President and CEO of
Emera. “One of our priorities has been to identify a buyer for
Emera Maine that has the technical skills, experience and financial
strength to assure that our customers will continue to receive high
quality, reliable service. ENMAX more than measures up on these
essential qualities.”
This transaction reflects ENMAX’s strategy to grow through the
expansion of its regulated utility business in North America,
leveraging ENMAX’s established expertise in the provision of
regulated transmission and distribution electricity services. The
addition of approximately $900 million CAD in regulated rate base
assets to ENMAX’s portfolio results in a 50 per cent increase in
regulated rate base, with 70 per cent of ENMAX’s future cash flows
being derived from regulated and non-commodity sources, providing
stable, high-quality earnings to ENMAX. ENMAX is funding this
transaction 100 per cent through debt. Inclusive of incremental
transaction financing, this transaction will be immediately
accretive to earnings and cash flow.
“Transmission and distribution utilities play a vital role in
delivering essential electricity services to our homes, communities
and businesses, and as electricity customer needs evolve, utilities
like ENMAX and Emera Maine are adapting and investing to ensure
customers continue to benefit from access to safe, reliable
services,” says Gianna Manes, President and CEO of ENMAX. “The
acquisition of Emera Maine is a complementary opportunity for ENMAX
to grow our regulated utility business and enhance our connections
with customers.”
Emera’s first investment outside Canada was Bangor Hydro in
2001. Together with Maine Public Service Company, purchased in
2010, they merged to form Emera Maine. Emera Maine is headquartered
in Bangor and serves 159,000 customers in the northern part of the
state.
“Our Maine investments have delivered consistent financial
results over the past 18 years and have contributed greatly to
Emera’s evolution into a North American energy leader. I want to
thank the dedicated team at Emera Maine, who have continuously
demonstrated their commitment to working safely and delivering for
customers. ENMAX shares these commitments and values which will
contribute to a smooth transition,” says Balfour.
“We recognize and appreciate the long-standing community roots,
customer connections and history of service that Emera Maine
offers,” says Manes. “We look forward to partnering with its
capable and valued team to continue to serve Maine.”
The transaction is subject to certain conditions and obtaining
regulatory approvals, including those of the Maine Public Utilities
Commission, the United States Federal Energy Regulatory Commission
and pursuant to the Hart-Scott-Rodino Antitrust Improvements Act,
and is anticipated to close late in 2019.
RBC Capital Markets acted as exclusive financial advisor to
Emera on the transaction. Legal advisors to Emera were: Skadden,
Arps, Slate, Meagher & Flom LLP and Verrill Dana LLP
CIBC Capital Markets acted as exclusive financial advisor to
ENMAX on the transaction. Legal advisors to ENMAX were: Bracewell
LLP; Blake, Cassels & Graydon LLP and Bernstein
Shur Sawyer & Nelson, P.A.
About Emera
Emera Inc. is a geographically diverse energy and services
company headquartered in Halifax, Nova Scotia, with approximately
$32 billion CAD in assets and 2018 revenues of more than $6.5
billion CAD. The company primarily invests in regulated electricity
generation and electricity and gas transmission and distribution
with a strategic focus on transformation from high carbon to low
carbon energy sources. Emera has investments throughout North
America, and in four Caribbean countries. Emera’s common and
preferred shares are listed on the Toronto Stock Exchange and trade
respectively under the symbol EMA, EMA.PR.A, EMA.PR.B, EMA.PR.C,
EMA.PR.E, EMA.PR.F and EMA.PR.H. Depositary receipts representing
common shares of Emera are listed on the Barbados Stock Exchange
under the symbol EMABDR and on The Bahamas International Securities
Exchange under the symbol EMAB. Additional Information can be
accessed at www.emera.com or at www.sedar.com.
About ENMAX
ENMAX Corporation, through its subsidiaries, makes, moves and
sells electricity to residential, small business and large
commercial customers and is headquartered in Calgary, Alberta with
approximately $5.6 billion CAD in assets and revenues of $2.4
billion CAD in 2018. ENMAX Power Corporation owns and operates
transmission and distribution infrastructure in Calgary and ENMAX
Energy Corporation owns diverse generation facilities throughout
the province. Through its subsidiaries, ENMAX offers a range of
innovative energy solutions to over 669,000 customers across
Alberta including electricity, natural gas, renewable energy and
other services.
Forward Looking Information
This news release contains forward-looking information within
the meaning of applicable securities laws with respect to, among
other things, the completion of Emera’s sale of Emera Maine to
ENMAX. The words “anticipates”, “believes”, “budget”, “could”,
“estimates, “expects”, “forecasts”, “intends”, “may”, “plans”,
“projects”, “schedule”, “should”, “targets”, “will”, “would” and
similar expressions are often intended to identify forward-looking
information, although not all forward-looking information contains
these identifying words. The forward-looking information includes,
but is not limited to, statements regarding (i) the risk that Emera
may be unable to obtain governmental and regulatory approvals
required for the proposed sale; (ii) the risk that other conditions
to the closing of the proposed sale may not be satisfied; and (iii)
the timing to consummate the sale. There can be no assurance that
the proposed sale will be completed, or if it is completed, that it
will close within the anticipated time period. By its nature,
forward-looking information requires Emera to make assumptions and
is subject to inherent risks and uncertainties. These statements
reflect Emera management’s current beliefs and are based on
information currently available to Emera management. Additional
detailed information about these assumptions, risks and
uncertainties is included in Emera’s securities regulatory filings,
including its Annual Information Form, annual and interim
Management’s Discussion and Analysis, and in the notes to Emera’s
annual and interim financial statements, which filings can be found
on SEDAR at www.sedar.com.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20190325005408/en/
Emera Inc.Investor Relations
Erin Power902.428.6760erin.power@emera.com
Media
Jeff Myrick902.428.7172jeff.myrick@emera.com
ENMAX CorporationInvestor Relations
Davin Kivisto403.689.7255dkivisto@enmax.comFor more information,
visit www.enmax.com
Media
Gina Sutherland403.689.6150mediaroom@enmax.com
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