HALIFAX, Nova Scotia--(BUSINESS WIRE)--Emera Inc. (TSX:EMA) today announced it has entered into a subscription agreement with Algonquin Power & Utilities Corp (TSX:AQN) (“Algonquin”) under which Emera has subscribed for 7,865,170 subscription receipts (“Odell Subscription Receipts”) at a price of $8.90 per subscription receipt, for an aggregate subscription price of $70 million. Each subscription receipt represents a right to one common share of Algonquin.
The investment is made under the Strategic Investment Agreement Emera has with Algonquin, and is in support of Algonquin’s acquisition of the Odell Wind Farm project (“Odell”) in Minnesota, announced yesterday.
Under the subscription agreement, the Odell Subscription Receipts will become convertible into common shares of Algonquin following the closing of Algonquin’s acquisition of Odell. The agreement specifies that Emera is not permitted to convert the Odell Subscription Receipts into common shares of Algonquin unless all necessary regulatory approvals are obtained, which include the request for approval in connection with Emera’s ownership interest in Algonquin, which is currently before the Maine Public Utilities Commission. Conversion of Odell Subscription Receipts into common shares would also be conditional on Emera’s holdings not exceeding 25% of the outstanding shares of Algonquin at the time of conversion.
In addition to holding the Odell Subscription Receipts, Emera owns 50,126,766 common shares of Algonquin, currently representing approximately 24.1% of Algonquin's issued and outstanding common shares. The Odell Subscription Receipts have been acquired for investment purposes only, and Emera has no intention of acquiring control of Algonquin. Depending upon relevant economic, market or business conditions prevailing from time to time, Emera may determine to acquire or to dispose of common shares of Algonquin in TSX traded or privately negotiated transactions or otherwise. Under certain agreements previously entered into with Algonquin, including the Strategic Investment Agreement announced on April 29, 2011, Emera has agreed not to acquire any additional securities of Algonquin except in accordance with such agreements.
Forward Looking Information
This news release contains forward looking information. Actual future results may differ materially. Additional information related to Emera, including the company’s Annual Information Form, can be found on SEDAR at www.sedar.com.
Emera Inc. is geographically diverse energy and services company headquartered in Halifax, Nova Scotia with $9.07 billion in assets and 2013 revenues of $2.2 billion. The company invests in electricity generation, transmission and distribution, as well as gas transmission and utility energy services. Emera's strategy is focused on the transformation of the electricity industry to cleaner generation and the delivery of that clean energy to market. Emera has investments throughout northeastern North America, and in four Caribbean countries. Approximately 80% of the company's reported net income in 2013 came from regulated investments. Emera common and preferred shares are listed on the Toronto Stock Exchange and trade respectively under the symbol EMA, EMA.PR.A, EMA.PR.C, EMA.PR.E, and EMA.PR.F. Additional Information can be accessed at www.emera.com or at www.sedar.com.