HALIFAX and BRIDGETOWN, Barbados, Oct. 4, 2011 /CNW/ - Emera Inc. (TSX:
EMA) announced today that its wholly-owned subsidiary Emera Caribbean
Limited has agreed to sell its 19.1% indirect interest in St. Lucia
Electricity Services Ltd (LUCELEC) to Light & Power Holdings Ltd.
(LPH), also an Emera Inc. subsidiary, for US $25.8 million.
"This acquisition will allow for greater cooperation between two leading
electric utilities in the Eastern Caribbean," stated Peter Williams,
Managing Director, LPH. "LPH having an equity stake in LUCELEC will
allow for a sharing of skills and increased efficiencies that we
believe will result in benefits to customers in both countries."
LPH is an investment company and the owner of The Barbados Light & Power
Company Limited, a licensed supplier of electricity energy in Barbados.
Formed as a holding company in 1997, LPH was created to allow
Shareholders to take full advantage of potential investment
opportunities in and outside of Barbados, including equity investments
in other utilities. The acquisition of 19.1 % of LUCELEC is consistent
with this mandate. LPH is 80% owned by Emera Inc.
LUCELEC is a vertically integrated electric utility serving more than
60,000 customers, with exclusive license to generate, transmit and
distribute electricity on the island of St. Lucia to the year 2045. The
utility has 76 MW of generation capacity, primarily oil fired, and 1000
Km of electricity transmission and distribution assets.
LUCELEC's Managing Director, Trevor Louisy, welcomed news of the
investment noting, "It marks the start of a new era in the utility
sector in the region. Clearly the region has the financial and
technical capacity to make such investments, which was unheard of in
the past, and is indicative of a maturing of the sector. It also
suggests that LUCELEC has been and continues to be a sound investment
The terms of the acquisition agreement between Emera Caribbean and LPH
provide for a potential sales price increase or decrease of US $4
million within 30 months of the closing date of the transaction. Any
adjustment would be triggered by either an additional public offering
by LUCELEC; or a change in its allowed return on equity as a result of
a change in its regulatory framework.
This acquisition is subject to relevant government and regulatory
approvals and is expected to close in the fourth quarter of 2011.
About Light & Power Holdings:
Light & Power Holdings Ltd. is an investment company with electricity
being its core business. The Company has a wholly owned regulated
electric utility, The Barbados Light & Power Company Ltd., which has
been serving electricity customers in Barbados since 1911. Electricity
service is available to the entire island community.
Emera Inc. is an energy and services company with $6.6 billion in assets
and 2010 revenues of $1.6 billion. The company invests in electricity
generation, transmission and distribution, as well as gas transmission
and utility energy services. Emera's strategy is focused on the
transformation of the electricity industry to cleaner generation and
the delivery of that clean energy to market. Emera operates throughout
northeastern North America, in three Caribbean countries and in
California. More than 80% of the company's earnings come from regulated
investments. Emera common and preferred shares are listed on the
Toronto Stock Exchange and trade respectively under the symbol EMA and
EMA.PR.A. Additional information can be accessed at www.emera.com, www.sedar.com, or on www.sec.gov.