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February 1, 2019updated 11 Jun 2020 3:34pm

AltaGas closes $1.04bn stake sale in British Columbia hydro projects

Energy infrastructure company AltaGas has closed the sale of its remaining indirect equity interest of around 55% in its hydroelectric projects in Northwest British Columbia, Canada, in a deal worth C$1.37bn ($1.04bn).

Energy infrastructure company AltaGas has closed the sale of its remaining indirect equity interest of around 55% in its hydroelectric projects in Northwest British Columbia, Canada, in a deal worth C$1.37bn ($1.04bn).

The latest deal comes after the company sold a 35% stake in the hydroelectric facilities for C$922m ($701.76m) in June last year to fund its C$8.4bn ($6.39bn) purchase of US-based public utility firm WGL Holdings.

So far, AltaGas has achieved C$3.8bn ($2.89bn) in asset sales. Last month, the company revealed it is planning to sell targeted non-core assets to raise an additional C$1.5bn-C$2bn ($1.14bn-$1.52bn) in 2019.

The company will use proceeds from the sales to help fund capital growth.

“The sale of these assets further sharpens our focus on our Midstream and US Utilities businesses, where we see numerous opportunities to drive strong, organic growth.”

AltaGas president and CEO Randy Crawford said: “The sale of our remaining interest in the facilities marks another financial milestone, which has seen us successfully monetise C$3.8bn in non-core assets since completing the acquisition of WGL in July 2018.

“In addition to unlocking substantial value within our portfolio and enhancing our financial strength, the sale of these assets further sharpens our focus on our Midstream and US utilities businesses, where we see numerous opportunities to drive strong, organic growth.”

The company sold the 55% interest in the facilities to joint-venture entities controlled by Axium Infrastructure, as manager of Axium Infrastructure Canada II, and Manulife Financial.

The projects are located in the Tahltan First Nation territory. This includes the 214MW Forrest Kerr hydroelectric facility and 17MW Volcano Creek hydroelectric plant.

Each project began commercial operations in 2014.

The facilities also include the 72MW McLymont Creek project, which became operational in 2015.

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