Hydro One Agrees to Buy Brookfield Unit for $158 Millionby
Utility will acquire Ontario's Great Lakes Power Transmission
Hydro One will also assume C$151 million in Great Lake debt
Hydro One Ltd., Canada’s largest publicly listed power company, agreed to buy properties from Brookfield Infrastructure Partners LP that own and control Great Lakes Power Transmission for C$222 million ($158 million) in cash. The company will also assume C$151 million in debt.
The transaction follows Hydro One’s initial public offering in November, the largest Canadian listing in 15 years, and the recent acquisition of three local distribution companies.
"Our intense focus on customers and communities together with our disciplined approach to leveraging strategic opportunities is an important combination as we move forward with the transformation of this company," said Mayo Schmidt, Hydro One chief executive officer, said in a statement.
Hydro One shares were little changed at $22.48 in Toronto at 9:37 a.m and have risen almost 10 percent since its debut on Nov. 5.
Great Lakes Transmission is an Ontario regulated electricity transmission business operating along the eastern shore of Lake Superior near Sault Ste. Marie, Ontario. It consists of 15 transmission stations, 560 kilometers (348 miles) of transmission lines, and related infrastructure.
National Bank Financial Markets acted as financial adviser to Hydro One while Osler, Hoskin & Harcourt acted as legal council.