Algonquin Power to buy Bermuda's sole electric utility for USD 365m

Canadian renewable energy company Algonquin Power & Utilities Corp (TSX:AQN), or APUC, has agreed to acquire the parent of Bermuda Electric Light Company (BELCO), which is the sole electric utility in Bermuda.

Algonquin will pay a total of USD 365 million (EUR 323m), or USD 36.00 per share in cash, for 100% of the issued and outstanding common shares of Ascendant Group Ltd -- the owner of BELCO and AG Holdings Ltd. The implied expected closing net enterprise value of the deal is USD 470 million.

The transaction is seen to wrap up in the second half of 2019 and be immediately accretive to APUC's 2020 earnings per share. It is pending shareholder and regulatory approvals.

In a statement, Ascendant said that its future owner has the needed capital resources and operational knowledge to step up the company’s efforts to introduce renewable energy. Algonquin has pledged to assist BELCO in its collaboration with regulators to shape and implement the Integrated Resource Plan (IRP) for Bermuda and ultimately help this British Overseas Territory “achieve a greener and less carbon-intensive future.” Algonquin’s plan is to introduce technologies that will accelerate the deployment of renewables and battery storage.

BELCO provides regulated electrical generation, transmission and distribution services to Bermuda's 63,000 residents and businesses.

(USD 1.0 = EUR 0.886)

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