-
Purchase price of $959 million USD ($1,286 million CAD) for shares
plus acquired debt, for total enterprise value of $1.3 billion USD
($1.8 billion CAD)
-
Fully achieves the targeted asset sale component of Emera’s three-year
funding plan and proceeds will be used to support Emera’s capital
investment opportunities within its regulated utility businesses and
reduce corporate level debt
-
Marks the advancement of ENMAX’s growth strategy through the expansion
of its regulated business operations in North America, leading to a
50% increase in regulated rate base
-
Transitions ENMAX to an approximately $8.0 billion (assets), deeply
experienced regulated transmission and distribution utility operator
with an excellent reputation for customer satisfaction, safety and
reliability
-
Subject to certain conditions, including regulatory approvals, and
anticipated to close late in 2019
HALIFAX, Nova Scotia & CALGARY, Alberta--(BUSINESS WIRE)--
Emera Inc. (TSX:EMA) and ENMAX Corporation (ENMAX) today announced that
they have entered into a definitive agreement in which Emera has agreed
to sell to ENMAX its interest in Emera Maine, its regulated electric
transmission and distribution company in Maine, for a purchase price of
$959 million USD ($1,286 million CAD). Including the assumed debt,
aggregate enterprise value is forecasted to be approximately $1.3
billion USD ($1.8 billion CAD) on closing.
This press release features multimedia. View the full release here:
https://www.businesswire.com/news/home/20190325005408/en/
This transaction is part of Emera’s previously announced three-year
funding plan and together with the previously announced sale of its New
England Gas Generation portfolio will, on closing, fully achieve the
targeted asset sale component of the plan. Upon closing of these
transactions Emera will have raised approximately $2.1 billion CAD of
equity proceeds which will be used to reduce Emera corporate level debt
and support its $6.5 billionCAD three-year regulated capital program.
“We are very pleased with the progress we’ve made on optimizing our
portfolio and, upon closing, proceeds raised through select asset sales
will give us greater financial flexibility as we fund our continued
growth,” said Scott Balfour, President and CEO of Emera. “One of our
priorities has been to identify a buyer for Emera Maine that has the
technical skills, experience and financial strength to assure that our
customers will continue to receive high quality, reliable service. ENMAX
more than measures up on these essential qualities.”
This transaction reflects ENMAX’s strategy to grow through the expansion
of its regulated utility business in North America, leveraging ENMAX’s
established expertise in the provision of regulated transmission and
distribution electricity services. The addition of approximately $900
million CAD in regulated rate base assets to ENMAX’s portfolio results
in a 50 per cent increase in regulated rate base, with 70 per cent of
ENMAX’s future cash flows being derived from regulated and non-commodity
sources, providing stable, high-quality earnings to ENMAX. ENMAX is
funding this transaction 100 per cent through debt. Inclusive of
incremental transaction financing, this transaction will be immediately
accretive to earnings and cash flow.
“Transmission and distribution utilities play a vital role in delivering
essential electricity services to our homes, communities and businesses,
and as electricity customer needs evolve, utilities like ENMAX and Emera
Maine are adapting and investing to ensure customers continue to benefit
from access to safe, reliable services,” says Gianna Manes, President
and CEO of ENMAX. “The acquisition of Emera Maine is a complementary
opportunity for ENMAX to grow our regulated utility business and enhance
our connections with customers.”
Emera’s first investment outside Canada was Bangor Hydro in 2001.
Together with Maine Public Service Company, purchased in 2010, they
merged to form Emera Maine. Emera Maine is headquartered in Bangor and
serves 159,000 customers in the northern part of the state.
“Our Maine investments have delivered consistent financial results over
the past 18 years and have contributed greatly to Emera’s evolution into
a North American energy leader. I want to thank the dedicated team at
Emera Maine, who have continuously demonstrated their commitment to
working safely and delivering for customers. ENMAX shares these
commitments and values which will contribute to a smooth transition,”
says Balfour.
“We recognize and appreciate the long-standing community roots, customer
connections and history of service that Emera Maine offers,” says Manes.
“We look forward to partnering with its capable and valued team to
continue to serve Maine.”
The transaction is subject to certain conditions and obtaining
regulatory approvals, including those of the Maine Public Utilities
Commission, the United States Federal Energy Regulatory Commission and
pursuant to the Hart-Scott-Rodino Antitrust Improvements Act, and is
anticipated to close late in 2019.
RBC Capital Markets acted as exclusive financial advisor to Emera on the
transaction. Legal advisors to Emera were: Skadden, Arps, Slate, Meagher
& Flom LLP and Verrill Dana LLP
CIBC Capital Markets acted as exclusive financial advisor to ENMAX on
the transaction. Legal advisors to ENMAX were: Bracewell LLP; Blake,
Cassels & Graydon LLP and Bernstein Shur Sawyer & Nelson, P.A.
About Emera
Emera Inc. is a geographically diverse energy and services company
headquartered in Halifax, Nova Scotia, with approximately $32 billion
CAD in assets and 2018 revenues of more than $6.5 billion CAD. The
company primarily invests in regulated electricity generation and
electricity and gas transmission and distribution with a strategic focus
on transformation from high carbon to low carbon energy sources. Emera
has investments throughout North America, and in four Caribbean
countries. Emera’s common and preferred shares are listed on the Toronto
Stock Exchange and trade respectively under the symbol EMA, EMA.PR.A,
EMA.PR.B, EMA.PR.C, EMA.PR.E, EMA.PR.F and EMA.PR.H. Depositary receipts
representing common shares of Emera are listed on the Barbados Stock
Exchange under the symbol EMABDR and on The Bahamas International
Securities Exchange under the symbol EMAB. Additional Information can be
accessed at www.emera.com
or at www.sedar.com.
About ENMAX
ENMAX Corporation, through its subsidiaries, makes, moves and sells
electricity to residential, small business and large commercial
customers and is headquartered in Calgary, Alberta with approximately
$5.6 billion CAD in assets and revenues of $2.4 billion CAD in 2018.
ENMAX Power Corporation owns and operates transmission and distribution
infrastructure in Calgary and ENMAX Energy Corporation owns diverse
generation facilities throughout the province. Through its subsidiaries,
ENMAX offers a range of innovative energy solutions to over 669,000
customers across Alberta including electricity, natural gas, renewable
energy and other services.
Forward Looking Information
This news release contains forward-looking information within the
meaning of applicable securities laws with respect to, among other
things, the completion of Emera’s sale of Emera Maine to ENMAX. The
words “anticipates”, “believes”, “budget”, “could”, “estimates,
“expects”, “forecasts”, “intends”, “may”, “plans”, “projects”,
“schedule”, “should”, “targets”, “will”, “would” and similar expressions
are often intended to identify forward-looking information, although not
all forward-looking information contains these identifying words. The
forward-looking information includes, but is not limited to, statements
regarding (i) the risk that Emera may be unable to obtain governmental
and regulatory approvals required for the proposed sale; (ii) the risk
that other conditions to the closing of the proposed sale may not be
satisfied; and (iii) the timing to consummate the sale. There can be no
assurance that the proposed sale will be completed, or if it is
completed, that it will close within the anticipated time period. By its
nature, forward-looking information requires Emera to make assumptions
and is subject to inherent risks and uncertainties. These statements
reflect Emera management’s current beliefs and are based on information
currently available to Emera management. Additional detailed information
about these assumptions, risks and uncertainties is included in Emera’s
securities regulatory filings, including its Annual Information Form,
annual and interim Management’s Discussion and Analysis, and in the
notes to Emera’s annual and interim financial statements, which filings
can be found on SEDAR at www.sedar.com.
View source version on businesswire.com: https://www.businesswire.com/news/home/20190325005408/en/
Emera Inc.
Investor Relations
Erin Power
902.428.6760
erin.power@emera.com
Media
Jeff Myrick
902.428.7172
jeff.myrick@emera.com
ENMAX Corporation
Investor Relations
Davin Kivisto
403.689.7255
dkivisto@enmax.com
For
more information, visit www.enmax.com
Media
Gina Sutherland
403.689.6150
mediaroom@enmax.com
Source: Emera Inc.