HALIFAX, Nova Scotia--(BUSINESS WIRE)--
Emera Inc. (TSX: EMA) announced today that it has exchanged certain
previously acquired subscription receipts into 4.790 million common
shares of Algonquin Power & Utilities Corp. (“Algonquin”) (TSX: AQN), at
a price of C$4.72 per common share.
The subscription receipts were acquired on September 12, 2011, in
connection with the previously announced sale to Algonquin of the
49.999% interest held by Emera in California Pacific Electric Company,
LLC (“Calpeco”). The Calpeco sale was completed on December 21, 2012.
In addition to the 4.790 million common shares acquired today, Emera
owns 30.114 million previously acquired common shares of Algonquin,
representing a current ownership position of 34.903 million common
shares or approximately 19.9% of Algonquin’s issued and outstanding
shares.
In addition to the 34.903 million common shares Emera currently holds,
Emera holds 3.421 million subscription receipts (the “Calpeco
Subscription Receipts (Second Tranche)”) which are exchangeable for
additional common shares in connection with the Calpeco sale. The
Calpeco Subscription Receipts (Second Tranche) are exchangeable for
common shares of Algonquin on a one-for-one basis following completion
of Calpeco’s first rate case, which is expected to be completed in 2013.
Emera also holds 7.842 million subscription receipts at a purchase price
of $5.74 per receipt (the “2012 Subscription Receipts”), in connection
with the previously announced acquisition by Algonquin’s power
generation subsidiary of a 51% interest in a 480 MW U.S. wind power
portfolio.
In the event that all of the 7.842 million common shares that may be
issued pursuant to the 2012 Subscription Receipts and the 3.421 million
common shares issuable pursuant to the Calpeco Subscription Receipts
(Second Tranche) are issued, together with the 34.903 million common
shares currently held by Emera, Emera would own approximately 24.8% of
Algonquin’s issued and outstanding shares. The acquisition of Algonquin
shares is subject to regulatory approval from the Maine Public Utilities
Commission (“MPUC”), which has limited Emera’s ownership in Algonquin to
20%, with additional investment requiring specific approval. On June 25,
2012, Emera requested MPUC approval to increase its ownership in
Algonquin to 25%.
The common shares acquired today have been acquired for investment
purposes only. Emera has no intention of acquiring control of Algonquin.
Depending upon relevant economic, market or business conditions
prevailing from time to time, Emera may determine to acquire or to
dispose of common shares of Algonquin in TSX traded or privately
negotiated transactions or otherwise. Under certain agreements
previously entered into with Algonquin, Emera has agreed not to acquire
any additional securities of Algonquin except in accordance with such
agreements.
Forward Looking Information
This news release contains forward looking information. Actual future
results may differ materially. Additional information related to Emera,
including the company’s Annual Information Form, can be found on SEDAR
at www.sedar.com
or on EDGAR at www.sec.gov.
About Emera
Emera Inc. is an energy and services company with $7.4 billion in assets
and 2011 revenues of $2.1 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 has interests throughout
northeastern North America and in three Caribbean countries. 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, EMA.PR.A, and EMA.PR.C.
Additional information can be accessed at www.emera.com
or at www.sedar.com.
Emera Inc.
Jill MacDonald, CA , 902-428-6486
Manager, Investor
Relations
or
Sasha Irving, 902-229-5104
Director,
Corporate Communications
Source: Emera Inc.