February 1 (Renewables Now) - AltaGas Ltd (TSE:ALA) on Thursday announced the closing of the sale of its outstanding interest in a 303-MW portfolio of run-of-river hydroelectric facilities in British Columbia, Canada, pocketing CAD 1.37 billion (USD 1.04bn/EUR 910m).
After selling a 35% stake last summer to a joint venture between Axium Infrastructure Inc and Manulife Financial Corp, AltaGas has now shed its remaining 55% indirect equity interest in the portfolio. Called the Northwest British Columbia Hydro Electric Facilities, the particular portfolio includes the 214-MW Forrest Kerr Hydroelectric Facility, operational since October 2014, the 17-MW Volcano Creek Hydroelectric Facility, operational since December 2014, and the 72-MW McLymont Creek Hydroelectric Facility, operational since October 2015. The hydropower plants (HPPs) sell their output under separate 60-year, fully indexed electricity purchase agreements with BC Hydro.
The latest deal was concluded with the same buyers. AltaGas said that the purchase price of CAD 1.39 billion before adjustments is largely in line with the valuation of the 35% interest, which amounted to CAD 922 million.
AltaGas’ president and CEO Randy Crawford noted that the company has monetised CAD 3.8 billion in non-core assets since July 2018, when it acquired US utility WGL Holdings Inc. He added that the initiative has improved AltaGas’ financial strength and sharpened the focus on its Midstream and US Utilities businesses.
To further support its capital growth, AltaGas previously said it will monetise an additional CAD 1.5 billion-2 billion in targeted non-core assets this year.
(CAD 1.0 = USD 0.760/EUR 0.664)