A consortium led by Caisse de depot et placement du Quebec (CDPQ) has agreed to buy the minority stake it does not already have in the owner of Quebec-based energy trader Energir LP for CAD 1.14 billion (USD 944m/EUR 775m).
Trencap LP, which is controlled by CDPQ through a 64.74% ownership stake, has signed a definitive deal to acquire the 38.9% non-operating minority interest in Noverco Inc, the indirect owner of Energir, that is currently held by energy infrastructure company Enbridge Inc (TSE:ENB). The latter is thus fully exiting Noverco and Energir.
The aforementioned cash sum, which is net of Noverco non-recourse debt assumed by the buyer, puts a valuation of about 29 times reported 2020 GAAP earnings of CAD 39 million, according to the announcement.
The transaction is seen to close by early 2022, subject to regulatory clearance. Enbridge plans to initially use the sale proceeds to pay back short term debt.
Energir operates as a diversified energy business that serves as the main distributor of natural gas in the Canadian province of Quebec. CDPQ notes that half of the firm’s assets are now involved in the production and distribution of electricity and renewable energies. More specifically, Energir has wind power joint ventures in Quebec and also produces power from hydro, wind and solar plants in the US. Moreover, it is the primary distributor of electricity and the sole distributor of natural gas in the state of Vermont.
Overall, Energir has CAD 8 billion in total assets and serves 530,000 customers across Quebec and the northeastern US. CDPQ has been an investor in the company since 2004.
"With this transaction, CDPQ is furthering its support of Énergir, an innovative business that is working to decarbonize its operations for the benefit of its customers, for example by focusing on energy efficiency and renewable gas, thus contributing to a greener North American economy,” said Emmanuel Jaclot, Executive Vice-President and Head of Infrastructure at CDPQ.
(CAD 1.0 = USD 0.828/EUR 0.679)
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Source: Energir LP
