Canadian Utilities Ltd. has decided to sell its entire fossil fuel-based electricity generation portfolio in Canada to Energy Capital Partners LLC affiliate Heartland Generation Ltd. for approximately C$835 million, following a strategic evaluation.
The deal includes 11 partly or fully owned natural gas- and coal-fired power plants in Alberta, British Columbia and Ontario, with a combined generating capacity of 2,100 MW, according to a May 27 news release.
The deal is expected to close in the second half of 2019, subject to receipt of regulatory approvals and satisfaction of other customary closing conditions. RBC Capital Markets and J.P. Morgan are acting as joint financial advisers to the company.
Separately, the ATCO Ltd. subsidiary agreed to sell its 50% interest in the 260-MW Cory Cogeneration Station, located outside Saskatoon, Saskatchewan, to SaskPower International Inc. Financial terms of this deal were not disclosed.
At the closing of both transactions, Canadian Utilities would have approximately 250 MW of electricity generation assets in Canada, Mexico and Australia.
"We are focused on building a globally diversified portfolio of energy-related infrastructure assets. Continually evaluating our business model and strategies ensures we are well-positioned to capture opportunities in markets at home and abroad," said Canadian Utilities President and CEO Siegfried Kiefer.