Emera gets hold of 8.2m subscription receipts of Algonquin Power

Sep 13, 2011 - Canadian utility Emera (TSE:EMA) said Monday it had acquired 8.2 million subscription receipts of Algonquin Power & Utilities (TSE:AQN), or APUC, as a consideration for the sale of its 49.999% stake in California Pacific Electric Co (Calpeco).

The receipts were priced at CAD 4.72 (USD 4.7/EUR 3.5) apiece. They can be exchanged for APUC common stock on a one-for-one basis in two tranches. As part of the first tranche, Emerca can exchange 4.8 million of receipts following regulatory clearance of the ownership transfer, to be received in the fourth quarter of 2011 or the first quarter of 2012. The remainder of the receipts can be exchanged for common stock sometime in 2012.

Emera said it had acquired the receipts for investment purposes only. Excluding these receipts, the company owns a bit over 8.5 million shares in APUC and nearly 19 million subscription receipts related to other deals between the two companies. Should it choose to exchange all receipts into common shares, Emera would hold a total 24.35% of APUC issued and outstanding shares.

APUC operates hydropower, wind, landfill gas and biomass power facilities.

(CAD 1.0 = USD 1.004/EUR 0.738)

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