Emera Inc., through its Emera Utilities Holdings Ltd. subsidiary, agreed to indirectly acquire the remaining controlling stake in ICD Utilities Ltd. it does not currently own, according to an Oct. 13 news release.
Emera indirectly owns a 60.74% controlling stake in ICD Utilities, which in turn controls 50% of vertically integrated utility Grand Bahama Power Co. Ltd., the sole provider of electricity on Grand Bahama Island in the Bahamas. All of Emera's Caribbean interests, including Grand Bahama Power, are held through Emera (Caribbean) Inc.
Under the transaction, minority shareholders in ICD Utilities would receive 8.85 Bahamian dollars per share in cash, or 0.913 Emera depositary receipts, a 26% premium to the current share price and a 33% premium over the 24-month volume-weighted average share price, for total consideration of about 34.75 million dollars. The transaction values ICD Utilities at 88.5 million dollars.
The deal was unanimously approved by the independent directors of ICD Utilities. Management teams and operations at Grand Bahama Power will be retained. Forums for shareholders will be held at the Pelican Bay Resort in Freeport at 5:30 p.m. on Oct. 23 and at the British Colonial Hilton in Nassau at 12 p.m. on Oct. 24.
As of Oct. 13, As of Aug. 22, US$1 was equivalent to $1 Bahamian dollar.