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.
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.
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