Algonquin Releases ‘Acquisition Fact Sheet’

June 4, 2019 | 5 Comments

With Ascendant Group Limited having signed an agreement with Algonquin Power & Utilities Corp to “sell the Company subject to shareholder and regulatory approvals,” an ‘acquisition fact sheet’ has been released by the Canadian company highlighting its position and intentions regarding the sale.

Bloomberg video interview with Algonquin CEO Ian Robertson:

In providing an overview it states:

  • “Acquisition of 100% of the issued and outstanding shares of Ascendant Group Limited; Bermuda-based, publicly-traded company provides electric utility service to Bermuda’s 63,000 residents and businesses through Bermuda Electric Light Company [BELCO].
  • “Represents continued expansion of Algonquin’s regulated utility footprint into a new, high quality, investment grade region.
  • “Equity purchase price to be paid by Algonquin’s international power and utilities development platform of approximately U.S. $365 million

In providing information on “Algonquin’s Commitment to Customers and Communities” it states:

  • “Utility operations will continue under the respected BELCO brand and the company will continue to be regulated by the Regulatory Authority of Bermuda
  • “Algonquin is committed to a successful and seamless transition, under which customers will continue to receive safe, reliable and cost-effective service; Algonquin supports BELCO’s commitment to community involvement and charitable contributions

In providing information on “Algonquin’s Commitment to Employees” it states:

  • “Algonquin has strong, demonstrated alignment with Ascendant’s philosophies of safety, reliability and customer care
  • “No changes to management or operations staffing are expected as a result of the transaction
  • “Consistent with Algonquin’s operating structure, Ascendant headquarters and decision making will remain in Bermuda

In providing information on “Algonquin’s Commitment to the Regulator” it states:

  • “Algonquin is committed to supporting BELCO in maintaining its constructive regulatory relationship with the RA
  • “BELCO’s recently renewed license establishes BELCO as the only company licensed to transmit, distribute and bulk sell electricity in Bermuda
  • “The recently modernized regulatory framework employed in Bermuda establishes utility service tariffs based on regulated asset base and a weighted average cost of capital methodology – a methodology similar to that used in the U.S. and other jurisdictions familiar to Algonquin

The full Acquisition Fact Sheet follows below [PDF here]:

click here Bermuda Ascendant sale

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Comments (5)

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  1. CHRIS says:

    Bring it on! Let’s get a 21st century infrastructure!

  2. Dark star says:

    Is there a list of share holders???!

    • Joe Bloggs says:

      Ascendant is (or was) publicly traded on the BSX, so the BSX has a list of shareholders.

  3. enough says:

    just curious as to why the PLP made such a fuss about the airport being built and run by a Canadian company, but now under their watch they are allowing a Canadian company to come in any buy Ascendant. which will put foreigners in complete control of of electrical supply. Bit of a double standard here i would say.

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