Epcor Utilities reducing stake in Capital Power in $200M secondary offering

EDMONTON – Epcor Utilities Inc. is reducing its stake in Capital Power Corp. (TSX:CPX) in a $200-million secondary offering.

Trading in Capital Power shares was halted pending the announcement Tuesday.

Capital Power said Epcor has signed a deal with a syndicate of underwriters co-led by TD Securities and BMO Capital Markets to sell 8.5 million shares in the company at a price of $23.55 per share.

Get weekly money news

Get expert insights, Q&A on markets, housing, inflation, and personal finance information delivered to you every Saturday.

Sign up for weekly money newsletter Sign Up

By providing your email address, you have read and agree to Global News' Terms and Conditions and Privacy Policy.

The agreement also allows for the underwriters to buy up to an additional 1.275 million shares under an over-allotment option.

Epcor will indirectly own a 31 per cent stake in Capital Power on a fully diluted basis after the offering, but not including the over-allotment option.

Capital Power, which owns power plants across North America, will not receive any of the proceeds.

Shares in the company were up a nickel at $24.40 on the Toronto Stock Exchange on Tuesday.