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16 September 2003 - Kansas City-based power and gas utility,Aquila, Inc., announced Monday that it has reached an agreement to sell its Canadian utility operations for CDN$1.36 bn ($990m), including the assumption of debt but excluding closing adjustments.
Net proceeds from the sale will be used to reduce Aquila's debt and otherwise strengthen the company's balance sheet. The deal marks the exit of Aquila from business in Canada after 16 years.
Under terms of the agreement, Aquila will sell the shares of Aquila Networks Canada (Alberta) Ltd. and Aquila Networks Canada (British Columbia) Ltd. to Fortis Inc., a Canadian energy company based in Newfoundland. The transaction is subject to approval of energy regulatory commissions in Alberta and British Columbia, among other regulatory bodies, as well as other customary closing conditions. The parties expect the transaction to be completed in the first half of 2004.
"This is a significant move forward in our plan to focus on our core utility operations in the United States," said Keith Stamm, Aquila's chief operating officer.
Last year Aquila announced it would concentrate on its core regulated utility business in seven US states, Aquila has wound down wholesale energy marketing in North America and sold operations in Australia, New Zealand, the Britain and elsewhere.
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