Algonquin Power & Utilities Corp. Announces Increased Investment by Emera and
Approval of Georgia Natural Gas Distribution Acquisition
OAKVILLE, ON, Feb. 22, 2013
OAKVILLE, ON, Feb. 22, 2013 /PRNewswire/ - 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
atwww.AlgonquinPowerandUtilities.comand 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.
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