RA To “Evaluate” Proposed Sale Of BELCO

June 3, 2019 | 18 Comments

[Updated] The Regulatory Authority of Bermuda said they “will evaluate the proposed change of control of BELCO in accordance with the provisions of applicable legislation and any Ministerial directions.”

This follows after Ascendant, the parent company of BELCO, confirmed that they signed an agreement with Algonquin Power & Utilities Corp to “sell the Company subject to shareholder and regulatory approvals,” while a statement from Algonquin — which lists its head office in Ontario, Canada — said that under the terms of the all-cash transaction, Ascendant’s shareholders will receive $36 per common share, “representing an aggregate share purchase price of approximately U.S. $365 million.”

An RA spokesperson said, “The Regulatory Authority understand that Ascendant, [the parent company of BELCO], has signed an agreement to be sold to the Algonquin Power & Utilities Corporation.

“As the RA regulates BELCO, we will evaluate the proposed change of control of BELCO in accordance with the provisions of applicable legislation and any Ministerial directions.

“The next step in the process, from the RA’s perspective, will be for BELCO to submit a formal application for a change of control, so that the RA can make an informed decision.”

Update 5.00pm: Minister of Home Affairs Walter Roban said, “I note the announcement around the sale of Ascendant Group Limited today. There are considerable steps before this is finalized.

“I am confident that once an application is made to the Regulatory Authority there will be a robust review, to determine that Algonquin Power and Utilities Corporation has a strategy that is in line with the IRP and this Government’s commitment to drive down energy costs for the Bermuda public and ensure a more affordable and sustainable energy future for the island.”

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Comments (18)

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  1. sage says:

    It won’t be happening if Chris doesn’t give the go ahead.

  2. Power to the people says:

    Thanks minister! You’re doing an awesome job. Well done.

  3. More Nonsense says:

    It’s a legal process. There are lawyers who will ensure the legal process is followed to the letter. Bud is just blowing smoke.

  4. Truth is killin’ me... says:

    If the bills go down there would be overwhelming public support of this new company. Let’s see what Algonquin has to offer first before you cut them to pieces!

  5. aceboy says:

    Psssst….hey Algonquin….just offer the government a chicken farm. Trust me on this…..

  6. Joe Bloggs says:

    And that, folks, is why I sold my shares in Ascendent. I do not believe this government will allow the true value of Ascendent shares to be released even though it is a “publicly” traded company.

  7. 21 says:

    AND ANY MINISTERIAL DIRECTIONs. and there in lies the problem GOVT INTERFERENCE

    • Mark says:

      You are assuming the Ministers actually can understand more than 5 word sentences.

  8. Question says:

    If this government gets hold of “driving down energy costs” I dread to think what will happen. Given how they’ve managed to radically increase the cost of healthcare, food, taxes, and everything else, while destroying service.

    • Toodle-oo says:

      And they haven’t even started chipping away at the debt yet as minimal interest payments don’t put us in any better of a position.
      The nasty medicine hasn’t even been administered yet and people are squealing already .
      They aint seen anything yet .

  9. Pure Madness!!!!! says:

    Here we go again, another company sold to the Canadians…. Canadians taking over Bermuda like how China is taking over the rest of the world… (thinking) what will WE as born Bermudians have left to call our own….. Damn Shame (sad face)

    • Joe Bloggs says:

      PM, it is open to ant Bermudian or group of Bermudians to put in a competing bid. As far as I know, none have done so.

      That said, I also do not believe that the Government will allow Ascendant to be sold to a Canadian (or any foreign) company, hence my comment above.

    • Double S says:

      Then buy it yourself you ignorant xenophobe.

  10. lav says:

    ” what will WE as born Bermudians have left to call our own”

    Why so sad, pumpkin?
    You still have your homophobia, xenophobia and hatred for people who don’t look like you. Now you can hate Canada even more, while praising the USA and their leader, who echos you and your governments’ policies.

    • Ringmaster says:

      @Pure Madness. Hate to break it to you but this is nothing new. It really started with the sale of The Bank of Bermuda to HSBC. Which party was the Government at the time? Hint. It wasn’t the UBP/OBA. Then Bermuda as a whole was sold to foreign banks and investors to the amount of over $2.5bn. There is nothing left that “born Bermudians” own. It’s all be sold off.

  11. Imjustsaying says:

    It’s a Canadian company then we as consumers are in big trouble. OMG! SMH!

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