ATCO Ltd.
TSX : ACO.Y
TSX : ACO.X

ATCO Ltd.
ATCO Power

ATCO Power

January 04, 2011 08:31 ET

ATCO Ltd. and Canadian Utilities Limited Announce Completion of Internal Transfer of ATCO Resources Ltd.

CALGARY, ALBERTA--(Marketwire - Jan. 4, 2011) - ATCO Ltd. (TSX:ACO.X) (TSX:ACO.Y) and its subsidiary, Canadian Utilities Limited (TSX:CU) (TSX:CU.X), today announced the completion of the transfer of ATCO Ltd.'s wholly-owned subsidiary, ATCO Resources Ltd., from ATCO Ltd. to ATCO Power Ltd., a wholly-owned subsidiary of Canadian Utilities Limited. As a result of this transaction, ATCO Ltd. will file an early warning report pursuant to National Instrument 62-103 "The Early Warning System and Related Take-Over Bid and Insider Reporting Issues." A copy can be obtained from www.sedar.com.

Pursuant to the transaction, first announced November 15, ATCO Ltd. transferred the common shares of ATCO Resources Ltd. to Canadian Utilities Limited in exchange for, and acquiring ownership of newly issued, 1,059,658 Class A non-voting shares and 489,171 Class B common shares of Canadian Utilities Limited at prices per share of $53.15 per Class A non- voting share and $53.52 per Class B common share. Such prices were equal to the weighted average trading price of the shares on the Toronto Stock Exchange for the 20 trading days preceding January 1, 2011.

The newly issued Class A non-voting shares and Class B common shares each represent 1.2% of the issued and outstanding shares of each class before giving effect to the transaction, and following completion of the transaction ATCO Ltd. owns and exercises control over 39.2% of the Class A non-voting shares and 82.0% of the Class B common shares of Canadian Utilities Limited.

The transfer allows the ATCO Group to further align its ownership of all of its power generation activities under ATCO Power Ltd. This will simplify its ownership structure and reduce administrative efforts. ATCO Ltd. has no present intention to acquire ownership of, or control over, any additional securities of Canadian Utilities Limited.

Alberta-based ATCO Ltd., with more than 7,500 employees and assets of approximately $10 billion, delivers service excellence and innovative business solutions worldwide with leading companies engaged in Utilities (pipelines, natural gas and electricity transmission and distribution), Energy (power generation, natural gas gathering, processing, storage and liquids extraction), Structures & Logistics (manufacturing, logistics and noise abatement) and Technologies (business systems solutions). More information can be found at www.atco.com.

Forward-Looking Information: Certain statements contained in this news release may constitute forward-looking statements. Forward-looking statements are often, but not always, identified by the use of words such as "anticipate", "plan", "expect", "may", "will", "intend", "should", and similar expressions. These statements involve known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking statements. The Corporation believes that the expectations reflected in the forward-looking statements are reasonable, but no assurance can be given that these expectations will prove to be correct and such forward-looking statements should not be unduly relied upon. The Corporation's actual results could differ materially from those anticipated in these forward-looking statements as a result of regulatory decisions, competitive factors in the industries in which the Corporation operates, prevailing economic conditions, and other factors, many of which are beyond the control of the Corporation. The forward-looking statements contained in this news release represent the Corporations' expectations as of the date hereof, and are subject to change after such date. The Corporation disclaims any intention or obligation to update or revise any forward-looking statements whether as a result of new information, future events or otherwise, except as required under applicable securities regulations.

Contact Information

  • ATCO Ltd.
    B.R. (Brian) Bale
    Senior Vice President & Chief Financial Officer
    (403) 292-7502