Minister Roban on Ascendant Deal With Algonquin Power & Utilities Corp

Hard on the heels of the announcement of the sale by Ascendant Group Limited, Minister of Home Affairs, Walter Roban issued the following statement:

“I note the announcement around the sale of Ascendant Group Limited today (June 3).

“There are considerable steps before this is finalized. I am confident that once an application is made to the Regulatory Authority there will be a robust review, to determine that Algonquin Power and Utilities Corporation has a strategy that is in line with the IRP and this Governments commitment to drive down energy costs for the Bermuda public and ensure a more affordable and sustainable energy future for the island.”

Mr Roban was responding to the announcement earlier today by Ascendant Group Ltd, the parent company of Belco on the multi-billion deal with the Canadian firm Algonquin Power & Utilities Corporation.

Subject to shareholder and regulatory approval, the deal will see a $36 pay out per common share, expected to be settled during the second half of the year.

Under the terms of the all-cash transaction, Algonquin said the pay out to Ascendant’s shareholders represents “an aggregate share purchase price of approximately US $365 million”.

A spokesman for Ascendant said: “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.”

The company also areed to run Ascendant’s businesses from Bermuda and retain the Bermudian employee base, with plans to introduce advanced training, both locally and abroad.