Algonquin Power & Utilities Corp. (“APUC”) (TSX/NYSE:AQN) announced the execution of an implementation agreement with the Ascendant Group Limited (“Ascendant”) (BSX:AGL.BH) pursuant to which APUC’s international power and utilities investment platform, AAGES, is expected to acquire Ascendant and its subsidiaries (the “Transaction”). Ascendant, through its major subsidiary, Bermuda Electric Light Company, is the sole electric utility providing safe and reliable regulated electrical generation, transmission and distribution services to Bermuda.
Under the terms of the all-cash transaction, which has been unanimously approved by the Board of Directors of each company, Ascendant’s shareholders will receive U.S. $36.00 per common share, representing an aggregate share purchase price of approximately U.S. $365 million.
“The acquisition of Bermuda Electric Light Company builds materially on our international growth program through the addition of this high-quality utility, an acquisition which will be immediately accretive to earnings,” said Ian Robertson, Chief Executive Officer of APUC. “In addition to Ascendant customer and employee benefits coming from the scale of our existing utility operations, we are confident that our demonstrated capability in renewable energy development can help Bermuda realize on its carbon reduction aspirations.”
Continuing Commitment to Our Communities, Customers and Employees
APUC will work closely with the Bermuda Government and the Regulatory Authority to ensure a seamless transition so that the residents and businesses of Bermuda will continue to receive the same safe, reliable and cost effective utility service that they currently enjoy. APUC is committed to maintaining the existing local management and operations teams. Customers should not expect any impact to rates from the acquisition. AAGES’ project implementation experience is available to support the major generation rehabilitation program underway at Ascendant and help accelerate Bermuda’s commitment to reducing carbon intensity.
Investment Grade Financing Plan
The financing plan for the Transaction is expected to be consistent with APUC’s current credit profile and strong investment grade credit ratings. Closing of the Transaction is expected to occur in late 2019 and is subject to customary closing conditions, including the approval of Ascendant’s common shareholders, and the receipt of certain regulatory and government approvals in Bermuda.
For more transaction details, see the fact sheet located at http://investors.algonquinpower.com/MNA
Raymond James Ltd. acted as financial advisor, Husch Blackwell LLP acted as corporate legal counsel, and Conyers Dill & Pearman acted as local legal counsel to APUC.