Fortis Inc.

Fortis Inc.

January 03, 2007 16:04 ET

Fortis Inc. Announces Offering of 5,170,000 Common Shares

ST. JOHN'S, NEWFOUNDLAND--(CCNMatthews - Jan. 3, 2007) -

Not for distribution to U.S. news wire services or dissemination in the United States.

Fortis Inc. ("Fortis" or the "Corporation") (TSX:FTS) announced today that it has entered into an agreement with Scotia Capital Inc. and CIBC World Markets Inc. pursuant to which they have agreed to purchase from Fortis and sell to the public 5,170,000 Common Shares of the Corporation.

The purchase price of $29.00 per Common Share will result in gross proceeds of $149,930,000. The net proceeds of the offering will be used by Fortis to repay indebtedness incurred from recent acquisitions, to support the capital expenditure program of the Corporation's regulated utilities in western Canada, and for general corporate purposes.

The offering is subject to the receipt of all necessary regulatory and stock exchange approvals. Closing is expected to occur on or about January 18, 2007.

The Common Shares have not been registered under the U.S. Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements. This media release shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any offer, solicitation or sale of the securities in any state in which such offer, solicitation or sale would be unlawful.

Fortis is principally a diversified, international electric utility holding company with assets of approximately $5.0 billion and annual revenues of more than $1.4 billion. Fortis has holdings in regulated electric distribution utilities in Alberta, British Columbia, Newfoundland, Ontario, Prince Edward Island, Belize, Grand Cayman and the Turks and Caicos Islands. It has non-regulated generation operations in Belize, Ontario, Newfoundland, British Columbia and upper New York State. Fortis also has investments in real estate and hotels through its wholly owned non-utility subsidiary.

The Common Shares, First Preference Shares, Series C; First Preference Shares, Series E; and First Preference Shares, Series F of Fortis are traded on the Toronto Stock Exchange under the symbols FTS, FTS.PR.C, FTS.PR.E and FTS.PR.F, respectively. Fortis information can be accessed at

Fortis includes forward-looking statements in this material. By their very nature, forward-looking statements are based on underlying assumptions and are subject to inherent risks and uncertainties surrounding future expectations generally. Such events include, but are not limited to, general economic, market and business conditions, regulatory developments, weather and competition. Fortis cautions readers that should certain events or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary significantly from those expected. For additional information with respect to certain of these risks or factors, reference should be made to the Corporation's continuous disclosure materials filed from time to time with Canadian securities regulatory authorities. 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.

Contact Information

  • Fortis Inc.
    Mr. Barry Perry
    Vice President, Finance and Chief Financial Officer
    (709) 737-2800
    (709) 737-5307 (FAX)