ATCO Power

ATCO Power

November 15, 2010 08:31 ET

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

Transfer simplifies ownership structure of power generation assets

CALGARY, ALBERTA--(Marketwire - Nov. 15, 2010) - ATCO Ltd. (TSX:ACO.X) (TSX:ACO.Y) and its subsidiary, Canadian Utilities Limited (TSX:CU) (TSX:CU.X), today announced that their Boards of Directors have approved 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.

ATCO Resources Ltd. and ATCO Power Ltd. are jointly involved in ten power generating plants in Canada, of which ATCO Resources' interest is 229 MW. The value of the common shares of ATCO Resources, net of its existing debt obligations, is $82.5 million, as estimated by an independent financial advisor and supported by management.

ATCO Ltd. will transfer the common shares of ATCO Resources to Canadian Utilities Limited, in exchange for newly issued Class A non-voting shares and Class B voting shares of Canadian Utilities Limited, having a value of $82.5 million. Based upon current market prices, it is estimated that ATCO's ownership of Canadian Utilities Limited's Class B voting shares will increase from 81.7% to 82%, and ATCO's overall ownership of Canadian Utilities Limited will increase from 52.2% to approximately 52.8% as a result of the transaction.

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.

The transaction is expected to be completed on or about January 1, 2011, pending the receipt of all necessary approvals, including Toronto Stock Exchange approval, those from lenders and other third parties.

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

Forward-Looking Information:

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Contact Information

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