HALIFAX, Nova Scotia and BRIDGETOWN, Barbados, Oct. 4, 2011 /PRNewswire/ — Emera Inc. (TSX: EMA) announced today that its wholly-owned subsidiary Emera Caribbean Limited has agreed to sell its 19.1% indirect interest in St. Lucia Electricity Services Ltd (LUCELEC) to Light & Power Holdings Ltd. (LPH), also an Emera Inc. subsidiary, for US $25.8 million.
“This acquisition will allow for greater cooperation between two leading electric utilities in the Eastern Caribbean,” stated Peter Williams, Managing Director, LPH. “LPH having an equity stake in LUCELEC will allow for a sharing of skills and increased efficiencies that we believe will result in benefits to customers in both countries.”
LPH is an investment company and the owner of The Barbados Light & Power Company Limited, a licensed supplier of electricity energy in Barbados. Formed as a holding company in 1997, LPH was created to allow Shareholders to take full advantage of potential investment opportunities in and outside of Barbados, including equity investments in other utilities. The acquisition of 19.1 % of LUCELEC is consistent with this mandate. LPH is 80% owned by Emera Inc.
LUCELEC is a vertically integrated electric utility serving more than 60,000 customers, with exclusive license to generate, transmit and distribute electricity on the island of St. Lucia to the year 2045. The utility has 76 MW of generation capacity, primarily oil fired, and 1000 Km of electricity transmission and distribution assets.
LUCELEC’s Managing Director, Trevor Louisy, welcomed news of the investment noting, “It marks the start of a new era in the utility sector in the region. Clearly the region has the financial and technical capacity to make such investments, which was unheard of in the past, and is indicative of a maturing of the sector. It also suggests that LUCELEC has been and continues to be a sound investment option.”
The terms of the acquisition agreement between Emera Caribbean and LPH provide for a potential sales price increase or decrease of US $4 million within 30 months of the closing date of the transaction. Any adjustment would be triggered by either an additional public offering by LUCELEC; or a change in its allowed return on equity as a result of a change in its regulatory framework.
This acquisition is subject to relevant government and regulatory approvals and is expected to close in the fourth quarter of 2011.
About Light & Power Holdings:
Light & Power Holdings Ltd. is an investment company with electricity being its core business. The Company has a wholly owned regulated electric utility, The Barbados Light & Power Company Ltd., which has been serving electricity customers in Barbados since 1911. Electricity service is available to the entire island community.
Emera Inc. is an energy and services company with $6.6 billion in assets and 2010 revenues of $1.6 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 operates throughout northeastern North America, in three Caribbean countries and in California. 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 and EMA.PR.A. Additional information can be accessed at www.emera.com, www.sedar.com, or on www.sec.gov.
For further information:
Director, Corporate Communications
Light & Power Holdings Ltd.
Jackie Marshall-Clarke Corporate
St. Lucia Electricity Services Ltd.
Corporate Communications Manager