New York Utility With Choice Program To Be Acquired By Canadian-Based Holding Company
August 31,2017
Algonquin Power & Utilities Corp. ("APUC") announced today that its subsidiary Liberty Utilities Co. ("Liberty Utilities"), APUC's regulated distribution utility business, has entered into a definitive agreement with Enbridge Gas Distribution Inc. ("Enbridge Gas Distribution"), a subsidiary of Enbridge Inc., to acquire St. Lawrence Gas Company, Inc. (SLG), a regulated natural gas distribution utility located in northern New York State, and its subsidiaries.
St. Lawrence Gas Company has a supply choice program
St. Lawrence Gas Company provides natural gas distribution to a service territory located in northern New York State paralleling the south shore of the St. Lawrence River, serving approximately 16,000 residential, commercial and industrial customers
The proposed transaction is structured as a stock purchase in exchange for a cash purchase price of U.S. $70 million, less the total amount of outstanding SLG indebtedness which will be assumed by Liberty Utilities at closing and is currently expected to be approximately U.S. $10 million. APUC will finance the transaction using cash on hand and existing credit facilities. Closing of the acquisition remains subject to regulatory approval and other customary closing conditions, and is expected to occur in 2018.