Logout
Click here for Pulp & Paper Radio International
The Paperitalo Library
Free Downloads
Search
My Profile
Login
AbitibiBowater to Sell its Ontario Hydro Assets
Print

Montreal, Quebec, Canada, 22 February 2011 -- AbitibiBowater has agreed to sell its 75% indirect interest in ACH Limited Partnership for cash proceeds of CAD 300 million to a Canadian consortium.

Following the completion of the transaction, ACH LP will continue to supply electricity to AbiBow Canada Inc.'s Fort Frances and Iroquois Falls pulp and paper mills under the terms of a long-term power purchase agreement.

"We are looking forward to the completion of this transaction. Our intention is to immediately apply CAD 100 million of the proceeds from this sale to reduce company debt,'' said Richard Garneau, president and CEO of AbitibiBowater. "We intend to protect the cost structure of the Iroquois Falls and Fort Frances mills and remain committed to reducing costs.''

ACH LP was established in April 2007 to hold hydroelectric generating assets in Ontario by the company's Abitibi-Consolidated Company of Canada subsidiary (now AbiBow Canada Inc.). As part of the transaction, the Caisse de dépôt et placement du Québec has agreed to sell its 25% interest in ACH LP.

The agreement values the hydro assets, which have a combined capacity of approximately 131 MW, at approximately CAD 640 million.

 

Related Articles:


Powered by Bondware
News Publishing Software

The browser you are using is outdated!

You may not be getting all you can out of your browsing experience
and may be open to security risks!

Consider upgrading to the latest version of your browser or choose on below: