Business
Light & Power Holdings Ltd. to acquire Emera Caribbean Limited's Interest in St. Lucia Electricity Services
HALIFAX and BRIDGETOWN, Barbados, Oct. 4, 2011 /CNW/ - Emera Inc. (TSX: EMA) announced today ...
About this update from Emera Incorporated
[{"type":"text","content":"\n\n\n\n\n\nHALIFAX and BRIDGETOWN, Barbados, Oct. 4, 2011 /CNW/ - Emera Inc. (TSX:\n EMA) announced today that its wholly-owned subsidiary Emera Caribbean\n Limited has agreed to sell its 19.1% indirect interest in St. Lucia\n Electricity Services Ltd (LUCELEC) to Light Power Holdings Ltd.\n (LPH), also an Emera Inc. subsidiary, for US $25.8 million.\n\n\n\"This acquisition will allow for greater cooperation between two leading\n electric utilities in the Eastern Caribbean,\" stated Peter Williams,\n Managing Director, LPH. \"LPH having an equity stake in LUCELEC will\n allow for a sharing of skills and increased efficiencies that we\n believe will result in benefits to customers in both countries.\"\n\n\nLPH is an investment company and the owner of The Barbados Light Power\n Company Limited, a licensed supplier of electricity energy in Barbados.\n Formed as a holding company in 1997, LPH was created to allow\n Shareholders to take full advantage of potential investment\n opportunities in and outside of Barbados, including equity investments\n in other utilities.  The acquisition of 19.1 % of LUCELEC is consistent\n with this mandate. LPH is 80% owned by Emera Inc.\n\n\nLUCELEC is a vertically integrated electric utility serving more than\n 60,000 customers, with exclusive license to generate, transmit and\n distribute electricity on the island of St. Lucia to the year 2045. The\n utility has 76 MW of generation capacity, primarily oil fired, and 1000\n Km of electricity transmission and distribution assets.\n\n\nLUCELEC's Managing Director, Trevor Louisy, welcomed news of the\n investment noting, \"It marks the start of a new era in the utility\n sector in the region.  Clearly the region has the financial and\n technical capacity to make such investments, which was unheard of in\n the past, and is indicative of a maturing of the sector. It also\n suggests that LUCELEC has been and continues to be a sound investment\n option.\"\n\n\nThe terms of the acquisition agreement between Emera Caribbean and LPH\n provide for a potential sales price increase or decrease of US $4\n million within 30 months of the closing date of the transaction.  Any\n adjustment would be triggered by either an additional public offering\n by LUCELEC; or a change in its allowed return on equity as a result of\n a change in its regulatory f...