The Oakville, Ontario based energy company, Algonquin Power & Utilities Corp. (APUC), has announced it is to acquire Bermuda’s electricity supplier, the Bermuda Electric Light Company.
The deal will see APUC pay the Bermuda Electric Light Company’s parent, Ascendant, $36.00 per share, aggregating to a total price of approximately $365mn. The all cash transaction has been approved unanimously by both boards.
APUC placed the deal in line with their focus on growth and sustainability, saying it hoped that its experience in responsible utility ownership and renewable energy development would benefit Bermuda economically and environmentally.
"The acquisition of Bermuda Electric Light Company builds materially on our international growth program through the addition of this high-quality utility, an acquisition which will be immediately accretive to earnings," said Ian Robertson, Chief Executive Officer of APUC. "In addition to Ascendant customer and employee benefits coming from the scale of our existing utility operations, we are confident that our demonstrated capability in renewable energy development can help Bermuda realize on its carbon reduction aspirations."
The transaction is expected to close in late 2019, subject to the usual closing conditions, including the receipt of Bermudan government and regulatory approval.
APUC is listed on the Toronto Stock Exchange under the symbol “AQN”.