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
From outer space? Sask. farmers baffled after discovering strange wreckage in field
A family of fifth generation farmers from Ituna, Sask. are trying to find answers after discovering several strange objects lying on their land.
NEW Iconic Canadian song turns 50
Andy Kim's 'Rock Me Gently' is marking a major milestone, as it celebrates its 50th anniversary.
Oprah Winfrey: I set an unrealistic standard for dieting
Oprah Winfrey said on Thursday evening that she has long played a role in promoting unhealthy and unrealistic diets.
Prince Harry, Meghan arrive in Nigeria to champion the Invictus Games and meet with wounded soldiers
Prince Harry and his wife, Meghan, arrived in Nigeria on Friday to champion the Invictus Games, which he founded to aid the rehabilitation of wounded and sick servicemembers and veterans, among them Nigerian soldiers fighting a 14-year war against Islamic extremists.
Countries struggle to draft 'pandemic treaty' to avoid mistakes made during COVID
After the coronavirus pandemic triggered once-unthinkable lockdowns, upended economies and killed millions, leaders at the World Health Organization and worldwide vowed to do better in the future. Years later, countries are still struggling to come up with an agreed-upon plan for how the world might respond to the next global outbreak.
Toronto police called to Drake's Bridle Path mansion for another alleged intruder on Thursday
Toronto police say a man who allegedly attempted to access Drake’s Bridle Path property was taken to hospital on Thursday after an altercation with security guards.
Ontario family receives massive hospital bill as part of LTC law, refuses to pay
A southwestern Ontario woman has received an $8,400 bill from a hospital in Windsor, Ont., after she refused to put her mother in a nursing home she hated -- and she says she has no intention of paying it.
Flat tire on a highway? Here's why you shouldn't try to fix it
If you're cruising down a highway and realize you have a flat tire, you may want to think twice before stopping to fix it on the side of the road.
Storm-battered U.S. South is again under threat. A boy swept into a drain fights for his life
Dangerous storms crashed over parts of the U.S. South on Thursday even as the region cleaned up from earlier severe weather that spawned tornadoes, killed at least three people, and gravely injured a boy who was swept into a storm drain as he played in a flooded street.