Ascendant Group Limited, the parent company of Belco today announced a multi-billion dollar deal, signed, sealed and delivered with the Canadian firm Algonquin Power & Utilities Corporation.

The new deal, subject to shareholder approval and regulatory approval, will see shareholders get $36 per common share, to be paid on closure, which is anticipated during the second half of this year.

A statement from Algonquin said that under the terms of the all-cash transaction, the pay out to Ascendant’s shareholders at $36 a share, represents “an aggregate share purchase price of approximately US $365 million”.

A spokesman for Ascendant said: “Algonquin has the capital resources, operational knowledge and experience in technological innovation necessary to advance the company’s efforts to introduce renewable energy and meet future challenges that will benefit the community as a whole.

“Algonquin is an established renewable energy and utility group, with North American assets in excess of $10 billion.

“They currently own and operate 54 energy facilities, of which approximately 90 per cent are renewable.”

He noted that the company agreed to run Ascendant’s businesses from Bermuda and retain the Bermudian employee base, with plans to introduce advanced training, both locally and abroad.

The spokesman added: “The company will continue initiatives such as the voluntary early retirement programme but is committed to no company-initiated job cuts.”

He also noted Algonquin’s commitment to renewable energy and power storage development, which will help move Bermuda away from dependence on fossil fuels and boost employment by way of new technologies emerging and evolving daily.

“Integration of additional low-cost renewable energy into Belco’s supply mix is expected to contribute to lower energy costs,” he said.

“For Bermuda, Algonquin has committed to introducing modern energy technologies and will look to accelerate the introduction of renewables, conservation, and battery storage for the island.

“The current board has provided the strategy that has brought Ascendant this far. We have laid the foundation for reliably powering Bermuda in cleaner, more efficient, and more cost-effective ways. Algonquin will bring the knowledge, the experience and the capital necessary to carry Ascendant into the future.

“All parties will work diligently to obtain all necessary approvals so the transition can happen in a timely manner to minimise any disruption to our companies, employees and our customers.”

The Canadian company’s head office is based in Ontario. The Bermuda Stock Exchange (BSX) suspended trading of Ascendant’s common shares pending today’s announcement.

Algonquin currently owns and operates 54 energy facilities, of which approximately 90 percent are renewable.

“Algonquin’s proposal has put front and centre the needs of all of our stakeholders and they have made the following commitments:

  • They will continue to run all of the Ascendant companies locally and will keep the employee base Bermudian, with the current Bermudian executive management team leading the Company. They will introduce advanced training opportunities, both locally and overseas. The Company will continue initiatives such as the voluntary early retirement programme but is committed to no Company-initiated job cuts
  • They will support BELCO in its collaboration with the Regulatory Authority in shaping and implementing the Integrated Resource Plan [IRP] for Bermuda
  • Algonquin has a commitment to sustainability and leadership in renewable energy and storage development that can be leveraged to help Bermuda achieve a greener and less carbon-intensive future. Integration of additional low-cost renewable energy into BELCO’s supply mix is expected to contribute to lower energy costs
  • For Bermuda, Algonquin has committed to introducing modern energy technologies and will look to accelerate the introduction of renewables, conservation, and battery storage for the island

““This includes innovative customer offerings involving these technologies. The introduction of these renewable technologies is expected to create new jobs for Bermudians in this exciting new field, in addition to the relocation of existing corporate functions to Bermuda.

“The current Board has provided the strategy that has brought Ascendant this far. We have laid the foundation for reliably powering Bermuda in cleaner, more efficient, and more cost-effective ways. Algonquin will bring the knowledge, the experience and the capital necessary to carry Ascendant into the future.

“All parties will work diligently to obtain all necessary approvals so the transition can happen in a timely manner to minimise any disruption to our companies, employees and our customers,” the statement from Ascendant concluded.

Algonquin has pledged to “work closely with the Bermuda Government and the Regulatory Authority to ensure a seamless transition so that the residents and businesses of Bermuda will continue to receive the same safe, reliable and cost effective utility service that they currently enjoy”.

The company also reaffirmed its commitment “to maintaining the existing local management and operations teams”.

According to the statement: “Customers should not expect any impact to rates from the acquisition.”

  • Plant Photos Supplied