Emera to increase its ownership stake in Algonquin Power through asset swap

<p>HALIFAX – Nova Scotia’s biggest utility company is increasing its stake in Algonquin Power and Utilities Corp. of Oakville, Ont. (TSX:AQN) in return for handing over its half of California Pacific Electric Co.</p> <p>Halifax-based Emera Inc. (TSX:EMA) already owns 15 per cent of Algonquin and that will increase to 25 per cent under the agreement announced Friday, assuming it gets shareholder approval.</p> <p>In return, Algonquin will acquire full ownership of California Pacific Electric Co. (Calpeco), which serves 47,000 customers in California.</p> <p>”This agreement provides clarity and transparency to a business relationship which has existed between Algonquin and Emera for the past two years and is intended to maximize shareholder value for both parties by capitalizing on our respective strengths,” said Ian Robertson, Algonquin’s chief executive officer.</p> <p>”The acquisition by Algonquin of 100 per cent of the Calpeco utility business is consistent with these themes and builds upon the successes achieved to date between Algonquin and Emera.”</p> <p>Emera president and CEO Chris Huskilson said it makes sense be involved in unregulated renewable electric generating facilities through Algonquin.</p> <p>”Emera and Algonquin have worked well together since 2009,” Huskilson said in a joint statement.</p> <p>Emera is the owner of Nova Scotia Power, the province’s biggest utility, and has numerous holdings in the United States and the Caribbean region.</p> <p>Emera is also one of the companies developing the Lower Churchill hydroelectric project in Labrador and a related transmission link between Newfoundland and Nova Scotia.</p>