TransCanada Closes Sale of TransCanada Power, L.P. Interest
CALGARY, Alberta – September 1, 2005 – TransCanada Corporation (TSX, NYSE: TRP) (TransCanada) has closed the sale of its interest in TransCanada Power, L.P. to EPCOR Utilities Inc. (EPCOR) for $529 million. Following the close of the transaction, which was effective at midnight this morning, the name of the partnership changed from TransCanada Power, L.P. to EPCOR Power L.P. (the Partnership).
“While we’ve divested our interest in the power partnership, TransCanada will continue to grow our power business – with a focus on larger, directly-owned power opportunities in Canada and the United States, including our investment in Bruce Power,” said Hal Kvisle, TransCanada's Chief Executive Officer.
Announced in May of this year, EPCOR’s acquisition includes:
Effective upon today’s closing, TransCanada is no longer the general partner of the Partnership and TransCanada and its affiliates will no longer own any Partnership units. Also, effective today, approximately 100 TransCanada employees, who provided management, operations and maintenance services under contract to the Partnership, have become EPCOR employees. A transition services agreement is also in place between EPCOR and TransCanada during the integration of the facilities to EPCOR. TransCanada will realize an after tax gain on the transaction of approximately $200 million.
BMO Nesbitt Burns acted as exclusive financial advisors to TransCanada.
TransCanada is a leader in the responsible development and reliable operation of North American energy infrastructure. TransCanada’s network of approximately 41,000 kilometres (25,600 miles) of pipeline transports the majority of Western Canada’s natural gas production to key Canadian and U.S. markets. A growing independent power producer, TransCanada owns, or has interests in, approximately 5,000 megawatts of power generation in Canada and the United States. TransCanada’s common shares trade on the Toronto and New York stock exchanges under the symbol TRP.
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