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
King Charles' cancer treatment progressing well, says Buckingham Palace
King Charles III’s doctors are 'sufficiently pleased' with his cancer treatment and he is expected to return to public-facing duties, Buckingham Palace announced on Friday.
Orca calf that was trapped in B.C. lagoon for weeks swims free
An orca whale calf that has been stranded in a B.C. lagoon for weeks after her pregnant mother died swam out on her own early Friday morning.
AFN chief says Air Canada offered a 15% discount after her headdress was mishandled
After the Assembly of First Nations' national chief complained to Air Canada about how staffers treated her and her ceremonial headdress on a flight this week, she says the airline responded by offering a 15 per cent discount on her next flight.
Regina police officer injured after being accidentally shot by fellow officer's gun
An investigation is underway after a Regina police officer was accidentally shot by a fellow officer’s gun during the search of a house early Friday morning.
Sophie Gregoire Trudeau on navigating post-political life, co-parenting and freedom
Sophie Gregoire Trudeau says there is 'still so much love' between her and Prime Minister Justin Trudeau, as they navigate their post-separation relationship co-parenting their three children.
DEVELOPING Bird flu outbreaks: WHO weighs in on public health risk
The current overall public health risk posed by the H5N1 bird flu virus is low, the World Health Organization said on Friday, but urged countries to stay alert for cases of animal-to-human transmission.
Taylor Swift dons Montreal designer's dress in 'Fortnight' video
A pair of Montreal designers' work has now been viewed over 41 million times. Taylor Swift dons a Victorian throwback black gown in her latest music video, 'Fortnight', designed by UNTTLD due Simon Belanger and Jose Manuel Saint-Jacques.
From faulty kids' cribs to flammable kids' bathrobes, here are the recalls of the week
Health Canada issued recalls for various items this week, including kids’ bathrobes, cribs and henna cones.
Island near Mull of Kintyre for sale for US$3.1 million
An idyllic 453-acre private island is up for sale off the west coast of Scotland and it comes with sandy beaches, puffins galore, seven houses, a pub, a helipad and a flock of black-faced sheep.