ESTU To Meet Regarding Ascendant Sale

June 4, 2019

The Electricity Supply Trade Union [ESTU] will meet with their members to discuss the planned sale of the Ascendant Group, with the ESTU President noting there is “considerable tension around this announcement, and we will look to make sure our members can voice their queries.”

Agreement To Sell Ascendant To Canadian Company For $365 Million

Yesterday, 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 Canada — said that Ascendant’s shareholders will receive $36 per common share, which represents a purchase price of approximately $365 million.

Sale Not Final, Needs Approval

The Bermuda Regulatory Authority said, “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.”

Minister of Home Affairs Walter Roban said, 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.”

Electricity Supply Trade Union’s Comments

ESTU President Donald Lottimore said, “We all woke on June 3, 2019 to information that has been pending since the January announcement that the Board of the Ascendant Group was looking to explore all options for the company.

“At 11.30am, the Electricity Supply Trade Union was notified by the Chairman, Deputy Chairman of the board and Senior Managers of Ascendant that the decision had been made to completely sell Ascendant to Algonquin Power and Utilities Corporation as they were the successful candidate to purchase Ascendant.

“At 4.00pm, Algonquin Executives, including the CEO Mr. Robertson, made a presentation to, and took questions from a collection of managers and the ESTU executive. The meeting was informative.

“We will meet with our members this morning, June 4, 2019 to field questions and begin our own research into the new potential owners. There is considerable tension around this announcement, and we will look to make sure our members can voice their queries. They have experience working in unionized environments in some of their other utilities. They have made themselves available for further discussion and will make sure we raise the concerns of our members as we continue to monitor the process.

Noting there are benchmarks that must be reached before the sale is finalized, the ESTU President added, “The potential sale of this Bermudian resources is of concern to the entire island, and we will continue to speak to the relevant parties to stay abreast of events.”

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Comments (10)

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  1. Real Deal says:

    why Canadian buying up every thing they already have the airport.

    • lav says:

      Since you hate Canadians so much, why don’t you buy it?

      You can’t, because you don’t have a penny to scratch your a$$ with…lol, loser

    • aceboy says:

      Airport is 100% owned by Bermuda. Reading is key.

  2. inna says:

    So what are the “considerable tensions”??

    • sandgrownan says:

      They are presumably worried that foreign ownership will interrupt their hitherto cushy existence and won’t tolerate their union bs. I presume.

  3. Mark says:

    News Flash, Chris and the brothers have nothing of value to add. Probably worried how Canadians would actually show them what work actually means.

    • wahoo says:

      If you don’t perform you should always be worried. Remember that Canadian guy that was here working on a building in town and he complained publicly about work ethic. They sent him packing in a hurry.

  4. Clueless leadership says:

    It is highly doubtful that a foreign entity will put up with any Bermuda union shenanigans. This will make for a very interesting situation.

  5. Mb says:

    The union should be worried writing on wall
    A bigger concern is what kind of energy are the offering will it be environmentally friendly ? Google them … concerning

  6. Kathy says:

    Exactly MB. Bermuda’s energy future should be our number 1 concern.