CPE Media News (1/31/2019) – AltaGas Ltd. (TSX: ALA) has completed the sale of its remaining indirect equity interest of approximately 55 percent in its Northwest British Columbia Hydro Electric Facilities for net proceeds of approximately $1.37 billion.
The sale of AltaGas’ remaining interest is to joint-venture entities controlled by Axium Infrastructure Inc., as manager of Axium Infrastructure Canada II Limited Partnership, and Manulife Financial Corporation – each affiliates of the joint-venture company that acquired AltaGas’ 35 percent interest in the facilities in June 2018.
The purchase price of $1.39 billion prior to adjustments is largely consistent with the valuation received in June 2018.
Axium and Manulife now own 90% of the facilities while AltaGas Canada Inc. (TSX: ACI) owning the remaining 10%.
The facilities are located in Tahltan First Nation territory and are comprised of the 214-megawatt Forrest Kerr Hydroelectric Facility and the 17-megawatt Volcano Creek Hydroelectric Facility, each of which achieved commercial operation in 2014, and the 72-megawatt McLymont Creek Hydroelectric Facility, which achieved commercial operation in 2015.
photo credit: AltaGas Canada
News Release
AltaGas completes sale of its remaining interest in Northwest B.C. Hydro Electric Facilities
AltaGas continues to strengthen its balance sheet and focus on Midstream and U.S. Utilities segments
CALGARY, Jan. 31, 2019 /CNW/ – AltaGas Ltd. (AltaGas) (TSX: ALA) announced today that it has successfully completed the sale of its remaining indirect equity interest of approximately 55 percent in its Northwest British Columbia Hydro Electric Facilities (the “Facilities”) for net proceeds of approximately $1.37 billion. The purchase price of $1.39 billion prior to adjustments is largely consistent with the valuation received for AltaGas’ June 2018 sale of 35 percent of its indirect equity interest in the Facilities.
“The sale of our remaining interest in the Facilities marks another financial milestone which has seen us successfully monetize $3.8 billion in non-core assets since completing the acquisition of WGL in July 2018,” said Randy Crawford, President and Chief Executive Officer with AltaGas. “In addition to unlocking substantial value within our portfolio and enhancing our financial strength, the sale of these assets further sharpens our focus on our Midstream and U.S. Utilities businesses, where we see numerous opportunities to drive strong, organic growth.”
In addition to the $3.8 billion in asset sales executed to date, in December 2018 AltaGas announced plans to monetize an additional $1.5 – $2.0 billion in targeted non-core assets in 2019. Proceeds can be used to further de-lever and efficiently fund capital growth.
The sale of AltaGas’ remaining interest in the Facilities is to joint-venture entities controlled by Axium Infrastructure Inc., as manager of Axium Infrastructure Canada II Limited Partnership, and Manulife Financial Corporation – each affiliates of the joint-venture company that acquired AltaGas’ 35 percent interest in the Facilities in June 2018.
The Facilities are located in Tahltan First Nation territory and are comprised of the 214-megawatt Forrest Kerr Hydroelectric Facility and the 17-megawatt Volcano Creek Hydroelectric Facility, each of which achieved commercial operation in 2014, and the 72-megawatt McLymont Creek Hydroelectric Facility, which achieved commercial operation in 2015.
About AltaGas
AltaGas is an energy infrastructure company with a focus on midstream, regulated utilities and power. AltaGas creates value by growing and optimizing its energy infrastructure, including a focus on clean energy sources. For more information visit: www.altagas.ca.
SOURCE AltaGas Ltd.
For further information: Investment Community, 1-877-691-7199, investor.relations@altagas.ca; Media, 587-955-4504, media.relations@altagas.ca
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