AltaGas to acquire 100 per cent of N.S. gas distributor Heritage Gas Ltd.

AltaGas Income Trust (TSX:ALA.UN) announced Tuesday it plans to become 100 per cent owner of Nova Scotia gas distributor Heritage Gas Ltd. In a news release, AltaGas said it’s indirect wholly-owned subsidiary, AltaGas Utility Group Inc., will pay SaskEnergy Inc. and Scotia Investments $109.8 million for the $75.1 per cent of the outstanding common shares and shareholder debt of Heritage that it doesn’t already own.

CALGARY — AltaGas Income Trust (TSX:ALA.UN) announced Tuesday it plans to become 100 per cent owner of Nova Scotia gas distributor Heritage Gas Ltd.

In a news release, AltaGas said it’s indirect wholly-owned subsidiary, AltaGas Utility Group Inc., will pay SaskEnergy Inc. and Scotia Investments $109.8 million for the $75.1 per cent of the outstanding common shares and shareholder debt of Heritage that it doesn’t already own.

Proceeds to SaskEnergy will be approximately $73.3 million for its 50.1 per cent interest and $36.5 million to Scotia for its 25 per cent interest.

Closing is expected later this month.

“The Heritage Gas acquisition is an outstanding investment for AltaGas,” said David Cornhill, chairman and CEO of AltaGas.

“AltaGas’ acquisition of Utility Group in October 2009 created a utility investment arm for AltaGas, and the Heritage Gas purchase is a significant first acquisition for Utility Group under AltaGas’ ownership,” he said.

Utility Group, SaskEnergy and Scotia partnered in 2002 to establish Heritage Gas to obtain and operate a natural gas distribution franchise for Nova Scotia.

Based in Dartmouth, Heritage Gas currently has 2,261 customers in Amherst and Cumberland County, Dartmouth, Halifax and the Halifax International airport through its 229-kilometre system.

On a full-year basis, AltaGas said in a news release that it expects the acquisition to be accretive to earnings per unit and cash flow per unit in the range of four to five cents in 2010.

AltaGas and Utility Group will fund the transaction with existing credit facilities.

Doug Kelln, President and CEO of SaskEnergy described the deal as a good return on his company’s investment and one that “will allow us to focus our future capital spending and resources on our Saskatchewan distribution, transmission and storage operations.”

AltaGas units were up 12 cents at $17.98 in midday trading Tuesday on the Toronto Stock Exchange.

Just Posted

City of Red Deer gets ball rolling on annexing more land

”It’s important we look ahead,” says Mayor Veer

Walmart melding online and in-store shopping

South Red Deer Walmart recently underwent six months of renovations

Updated: Nature trail unveiled at RDC

Trail unveiling and tree planting honours Nova Chemicals $2 million donation

Video: Windows smashed at three Red Deer businesses

Red Deer RCMP arrest man after vandalism spree

Automated cars could kill wide range of jobs, federal documents say

OTTAWA — More than one million jobs could be lost to the… Continue reading

McGill research finds significant driving impairment 5 hours after cannabis use

MONTREAL — Driving under the influence of cannabis remains dangerous even five… Continue reading

Family: Remembering the important things

It seems so much of life is work and routine and then… Continue reading

Canada gets into Women’s World Cup with 7-0 win over Panama

FRISCO, Texas — Christine Sinclair isn’t concerned about chasing records. She’s set… Continue reading

Baldwin urges ‘overthrow’ of Trump government via voting

MANCHESTER, N.H. — Actor Alec Baldwin followed up his latest parody portrayal… Continue reading

Prince Harry and Meghan expecting their 1st child in spring

CANBERRA, Australia — Prince Harry and his wife, the Duchess of Sussex,… Continue reading

Sears files for Chapter 11 amid plunging sales, massive debt

NEW YORK — Sears filed for Chapter 11 bankruptcy protection Monday, buckling… Continue reading

Doctors to debate medical pot as more patients expected to ask for prescriptions

VANCOUVER — Doctors with opposing views on whether medical marijuana should be… Continue reading

Most Read