Acquisition of 26th regulated
utility since 2009 further positions the company for growth
Highlights:
- Acquisition continues expansion of APUC's regulated utility
business in an investment-grade OECD country
- Consistent with APUC's pillars of growth and sustainability,
this acquisition provides the opportunity to capitalize on APUC's
core competency of responsible utility ownership
- The tender offer resulted in APUC's total acquisition of
approximately 94% of ESSAL's shares
OAKVILLE, ON, Oct. 19, 2020 /PRNewswire/ - In conjunction
with the previously announced agreement for Algonquin Power &
Utilities Corp.'s ("APUC") (TSX: AQN) (NYSE: AQN) to acquire
from Aguas Andinas S.A. its 53.51% direct and indirect
participation in the water utility company Empresa de Servicios
Sanitarios de Los Lagos S.A. ("ESSAL") for $92.3 million, a tender offer process was
launched for the total remaining shares of ESSAL due to local
regulation. ESSAL is a vertically integrated, regional water and
wastewater provider with approximately 230,000 connections in
Southern Chile.
The tender offer was completed on October
14, 2020 and the settlement of the tendered shares occurred
on October 19, 2020 resulting in APUC
acquiring 93.96% of the outstanding shares of ESSAL for an
aggregate purchase price of $162.1
million. The remaining shares are primarily owned by
government related entities and are expected to remain
outstanding.
"We are pleased to mark a new milestone in the growth of our
utility business with the acquisition of our first international
water utility in Chile," said
Arun Banskota, President & Chief
Executive Officer of APUC. "We intend to fully leverage our best
practices of safety, operational excellence, and innovation as we
serve the water needs of our Chilean customers and
communities."
About Algonquin Power & Utilities Corp., Liberty
Utilities, and Liberty Power
APUC is a diversified international generation, transmission,
and distribution utility with approximately $11 billion of total assets. Through its two
business groups, Liberty Utilities and Liberty Power, APUC is committed to providing
secure, safe, reliable, cost-effective, and sustainable energy and
water solutions through our portfolio of electric generation,
transmission, and distribution utility investments to over 1
million connections, largely in the
United States and Canada. APUC is a global leader in
renewable energy through its portfolio of long-term contracted
wind, solar, and hydroelectric generating facilities representing
over 2 GW of installed capacity and approximately 1.6 GW of
incremental renewable energy capacity under construction.
APUC is committed to delivering growth and the pursuit of
operational excellence in a sustainable manner through an expanding
global pipeline of renewable energy, electric transmission, and
water infrastructure development projects, organic growth within
its rate-regulated generation, distribution, and transmission
businesses, and the pursuit of accretive acquisitions.
APUC's common shares, Series A preferred shares, and Series D
preferred shares are listed on the Toronto Stock Exchange under the
symbols AQN, AQN.PR.A, and AQN.PR.D, respectively. APUC's common
shares, Series 2018-A subordinated notes and Series 2019-A
subordinated notes are listed on the New York Stock Exchange under
the symbols AQN, AQNA and AQNB, respectively.
Visit APUC at www.algonquinpowerandutilities.com and follow us
on Twitter @AQN_Utilities.
All amounts are shown in United
States dollars ("U.S. $" or "$"), unless otherwise
noted.
Caution Regarding Forward-Looking Information
Certain statements included in this news release constitute
''forward-looking information'' within the meaning of applicable
securities laws in each of the provinces of Canada and the respective policies,
regulations and rules under such laws and ''forward-looking
statements'' within the meaning of the U.S. Private Securities
Litigation Reform Act of 1995 (collectively, ''forward-looking
statements"). The words "will", "expects", "intends" and similar
expressions are often intended to identify forward-looking
statements, although not all forward-looking statements contain
these identifying words. Specific forward-looking statements
contained in this news release include, but are not limited to: the
potential for future utility acquisitions in the region, and
expectations regarding ESSAL's continuing operations and the
ability to leverage best practices in them. These statements are
based on factors or assumptions that were applied in drawing a
conclusion or making a forecast or projection, including
assumptions based on historical trends, current conditions and
expected future developments. Since forward-looking statements
relate to future events and conditions, by their very nature they
require making assumptions and involve inherent risks and
uncertainties. APUC cautions that although it is believed that the
assumptions are reasonable in the circumstances, these risks and
uncertainties give rise to the possibility that actual results may
differ materially from the expectations set out in the
forward-looking statements. Material risk factors include those set
out in APUC's most recent annual and interim management's
discussion and analysis, most recent annual information form and
prospectus and prospectus supplement relating to the offering.
Given these risks, undue reliance should not be placed on these
forward-looking statements, which apply only as of their dates.
Other than as specifically required by law, APUC undertakes no
obligation to update any forward-looking statements to reflect new
information, subsequent or otherwise.
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content:http://www.prnewswire.com/news-releases/algonquin-completes-essal-acquisition-301155057.html
SOURCE Algonquin Power & Utilities Corp.