Caisse company to own natural gas distributor Energir after $1.14B deal with Enbridge
A company controlled by the Caisse de depot et placement du Quebec will fully own Quebec's main natural gas distributor following a $1.14-billion purchase deal with Enbridge Inc.
Trencap LP, which is majority owned by the Quebec pension fund manager, has reached agreement to buy Enbridge's 38.9 per cent stake in Noverco.
With the purchase, Trencap LP will own 100 per cent of Noverco and Energir, a Quebec-based natural gas and power distributor servicing the province and Vermont.
The Caisse owns 64.74 per cent of Trencap, along with partners, including the Quebec Federation of Labour's Solidarity Fund.
The transaction is expected to close by early 2022 and is subject to the receipt of regulatory approvals and customary closing conditions.
Calgary-based Enbridge says proceeds from the sale will be used to repay short-term debt and is expected to be neutral to distributable cash flow per share.
"We're pleased to opportunistically monetize this non-strategic financial investment in Noverco at an attractive valuation and surface this value for our shareholders," stated Enbridge chief financial officer Colin Gruending.
Energir has more than $8 billion of assets and 530,000 customers across Quebec and the northeastern United States. In addition to distributing natural gas, it produces electricity from wind power in Quebec and from hydro and solar sources in Vermont.
The Caisse says it first invested in Energir in 2004.
"With this transaction, CDPQ is furthering its support of Energir, an innovative business that is working to decarbonize its operations for the benefit of its customers, for example by focusing on energy efficiency and renewable gas, thus contributing to a greener North American economy," stated Emmanuel Jaclot, head of Infrastructure.
This report by The Canadian Press was first published June 7, 2021.
CTVNews.ca Top Stories
'They needed people inside Air Canada:' Police announce arrests in Pearson gold heist
Police say one former and one current employee of Air Canada are among the nine suspects that are facing charges in connection with the gold heist at Pearson International Airport last year.
Why drivers in Eastern Canada could see big gas price spikes, and other Canadians won't
Drivers in Eastern Canada face a big increase in gas prices because of various factors, especially the higher cost of the summer blend, industry analysts say.
BREAKING Toronto Raptors player Jontay Porter banned from NBA
Toronto Raptors player Jontay Porter has been handed a lifetime ban from The National Basketball Association (NBA) following an investigation which found he disclosed confidential information to sports bettors, the league says.
WATCH LIVE As GC Strategies partner is admonished by MPs, RCMP confirms search warrant executed
The RCMP confirmed Wednesday it had executed a search warrant at an address registered to GC Strategies. This development comes as MPs are enacting an extraordinary, rarely used parliamentary power, summoning one of its contractors to appear before the House of Commons to be admonished publicly for failing to answer questions related to the ArriveCan app.
Disappointment widespread over budget's proposed $200-month disability benefit funding
Advocacy groups across Canada are expressing widespread disappointment about the amount of funding earmarked in the 2024 federal budget for the long-awaited Canada Disability Benefit.
Earthquake jolts southern Japan
An earthquake with a preliminary magnitude of 6.4 hit southern Japan late on Wednesday, said the Japan Meteorological Agency, without issuing a tsunami warning.
Woman who pressured boyfriend to kill his ex in 2000s granted absences from prison
A woman who pressured her boyfriend into killing his teenage ex more than a decade ago will be allowed to leave prison for weeks at a time.
opinion Don Martin: Gusher of Liberal spending won't put out the fire in this dumpster
A Hail Mary rehash of the greatest hits from the Trudeau government’s three-week travelling pony-show, the 2024 federal budget takes aim at reversing the party’s popularity plunge in the under-40 set, writes political columnist Don Martin. But will it work before the next election?
Former Sask. massage therapist who sexually assaulted clients has day parole revoked
A former massage therapist who pleaded guilty to a string of sexual assaults has had his day parole revoked.