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

Third pot store to open in May in Red Deer

Red Deerians will see a third pot store open up in the… Continue reading

A former Red Deer opioid addict understands the community’s frustration

‘It’s a privilege and an honour to be an example of change,’ he says

New loonie reason to celebrate and educate: central Alberta LGBTQ community

The new LGBTQ2 loonie is a conversation starter and a reason to… Continue reading

Montreal native Nicholas Latifi off to solid start on Formula 2 race circuit

Practice makes perfect for Canadian Nicholas Latifi. The 23-year-old Montreal auto racer… Continue reading

Bruins victory over Leafs ensures an American team will hoist the Stanley Cup

TORONTO — Many NHL players were either not yet born or too… Continue reading

Swole, buzzy, among new words in Merriam-Webster dictionary

BOSTON — Get swole, prepare a bug-out bag, grab a go-cup and… Continue reading

Garner graces cover of People’s annual ‘Beautiful Issue’

NEW YORK — Jennifer Garner graces the front of this year’s “Beautiful… Continue reading

Updated: Joshua Arthur Sanford has been found, says RCMP

37-year-old Ponoka man last seen on Tuesday morning

Inspired by a galaxy far, far away, these ‘Star Wars’ mementos could be yours forever

CHICAGO —The stuff of “Star Wars” —and there is unfortunately no better… Continue reading

Shoppers Drug Mart launches second online medical pot portal in Alberta

TORONTO — Medical cannabis users in Alberta can now get their therapeutic… Continue reading

Taylor Drive honours legacy of outstanding community volunteer

The main roadway going north and south on the west side of… Continue reading

Most Read