Halifax's Emera sells Maine power assets to Calgary's Enmax for $1.8B

Halifax-based Emera Inc. has agreed to sell its electrical transmission and distribution assets in Maine for $1.8 billion Cdn to Calgary's Enmax Corp.

Enmax, which is owned by the city of Calgary, has begun a strategy to expand its regulated utility business in North America.

Under the deal, Enmax will pay $1.29 billion plus assume roughly $500 million in debt. The companies value the total deal at $1.3 billion US, including debt.

Emera has been selling off its assets, including its New England Gas Generation portfolio sold last November, to pay down debt. It says it has met its target, after raising $2.1 billion Cdn from the sale of assets.

"The transaction fully achieves the targeted asset sale component of Emera's current funding plan announced in Q3 2018, enabling us to deliver the significant growth opportunities we've mapped out over the next three years," an Emera spokesperson said in a statement.

Emera's first investment outside Canada was Bangor Hydro in 2001. It bought the Maine Public Service Company in 2010 and merged the operations to form Emera Maine, based in Bangor, which serves 159,000 customers in the northern part of the state.

The company also has operations in Caribbean, Newfoundland and Labrador, Nova Scotia, Florida and New Mexico.

Enmax has electricity, natural gas, renewable energy and other energy services, with 669,000 customers across Alberta. It says the deal will be funded 100 per cent by taking on debt and the city of Calgary and Calgarians will not be tapped for funds.

"Growing Enmax creates greater value for our shareholder, the city of Calgary, and by extension, all Calgarians," the company said in a press release, pointing out it that it has returned dividends to the city annually since 1988.