AltaGas Ltd. has completed the sale of its remaining indirect equity interest of about 55% in its Northwest British Columbia hydroelectric facilities for net proceeds of about $1.37 billion.
AltaGas says the purchase price of $1.39 billion prior to adjustments is largely consistent with the valuation received for its June 2018 sale of 35% of its indirect equity interest in the facilities.
The company previously said it needed these funds for its acquisition of WGL Holdings Inc.
The sale is to joint-venture entities controlled by Axium Infrastructure Inc., as manager of Axium Infrastructure Canada II Limited Partnership, and Manulife Financial Corporation – each affiliates of the joint-venture company that acquired AltaGas’ 35% interest in the facilities in June 2018.
The facilities are located in Tahltan First Nation territory and are comprised of the 214-MW Forrest Kerr Hydroelectric Facility and the 17-MW Volcano Creek Hydroelectric Facility, each of which achieved commercial operation in 2014, and the 72-MW McLymont Creek Hydroelectric Facility, which achieved commercial operation in 2015.
“The sale of our remaining interest in the Facilities marks another financial milestone which has seen us successfully monetize $3.8 billion in non-core assets since completing the acquisition of WGL in July 2018,” said Randy Crawford, president and chief executive officer of AltaGas. “In addition to unlocking substantial value within our portfolio and enhancing our financial strength, the sale of these assets further sharpens our focus on our Midstream and U.S. Utilities businesses, where we see numerous opportunities to drive strong, organic growth.”
In addition to the $3.8 billion in asset sales executed to date, in December 2018 AltaGas announced plans to monetize an additional $1.5 billion to $2.0 billion in targeted non-core assets in 2019. Proceeds can be used to further de-lever and efficiently fund capital growth.
AltaGas is an energy infrastructure company with a focus on midstream, regulated utilities and power. AltaGas creates value by growing and optimizing its energy infrastructure, including a focus on clean energy sources.