Canada’s natural gas processor and utility company AltaGas Ltd. said that it will buy three gas-let go electric power plants in California for US$642 million from a fund keep running by Oaktree Capital Group.
Calgary-based AltaGas said it agreed to buy GWF Energy Holdings LLC, which claims the three utilities, from Oaktree Capital’s infrastructure venture centered Highstar Fund IV. They generate a joined 523 megawatts of power and are situated in the San Joaquin towns of Hanford, Tracy and Lemoore.
AltaGas Power Holdings is buying GWF Energy Holdings LLC, the plants’ proprietor, from Highstar Capital IV LP.
The deal is steady with AltaGas’ strategy of adding so as to expand its spotless energy portfolio gas-terminated electrical era and growing its power market business.
The Calgary-based power company likewise raised its month to month profit to 16.5 Canadian pennies from 16 Canadian pennies.
AltaGas, whose power era infrastructure in California is basically in the south, plans to extend in northern California with this deal.
AltaGas hopes to fund the acquisition, anticipated that would shut in the final quarter, with a blend of equity and debt.
The company said it will issue 8.8 million basic shares at C$34.25 every in a purchased deal drove by Toronto-Dominion Bank and Bank of Montreal.
AltaGas’ shares shut at C$35.52 on the Toronto Stock Exchange. Up to Monday’s nearby, the stock had declined around 18 percent this year.
Each of the three plants supply power under contract to Pacific Gas & Electric Co., AltaGas said.
AltaGas said that the acquisition will permit it to enhance its business in the midst of an overabundance of natural gas in US and Canada. “The acquisition of these power offices is an imperative addition to our business,” David Cornhill, the company’s chief executive, said in an announcement.
The deal extends AltaGas’ vicinity in California, where it operates a natural gas-let go plant in the town of company Blythe that supplies electricity to Southern California Edison. The Canadian company purchased that advantage in 2013 as a major aspect of its purchase of company Blythe Energy LLC.
Company AltaGas said it would make the deal with a mix of equity and debt. A major aspect of that, the company said that it plans to issue 226 million worth of new shares.
Separately, AltaGas additionally said Monday that it would expand its quarterly profit to 16.5 Canadian pennies ($0.12) a share, up from 16.0 Canadian pennies.