Canadian Utilities Limited, a member of ATCO Group of companies recently announced having signed a deal to sell its fossil fuel-based electricity generation portfolio for approximately $835 million. The sale is subject to customary closing adjustments. The deal concludes a strategic process for assets evaluation that the company began last year, cites source.
Reportedly, under an agreement with Heartland Generation Ltd., an Energy Capital Partners affiliate, the company will sell eleven partly or fully owned coal fired & natural gas fired electricity generating assets, located in Ontario, British Columbia & Alberta, with combined generating capacity of approximately 2,100 MW.
As per sources close to the matter, J.P Morgan and RBC Capital Markets are working as joint financial advisors to Canadian Utilities. The sale is expected to close in second half of 2019 and will be subject to regulatory approval & satisfaction of customary closing conditions.
In a separate business deal, Canadian Utilities has entered into an agreement to sell 50% of its ownership in the 260 megawatt Cory Cogeneration Station which is located outside Saskatoon, to SaskPower International.
Siegfried Kiefer, President & CEO, Canadian Utilities, was reportedly quoted saying that these assets provide reliable & affordable energy to customers across Canada and the high operational standards of the assets is a result of committed and dedicated employees of the company. Continuous evaluation of business model and strategies allows the company to capture opportunities in markets within the country and abroad, Kiefer added.
Tyler Reeder, Managing Partner, Energy Capital Partners was reportedly quoted saying that the company is impressed by Canadian Utilities’ strong operational history and high-quality assets portfolio and will look forward to partnering with talented management team.
Canadian Utilities have retained ASHCOR Technologies and Oldman River Hydro Facility and international projects, which are not part of sale agreement. With the closing of the sales agreement, Canadian Utilities will have approximately 250 MW of electricity generation assets operational, located in Mexico, Australia & Canada.