Emera to Buy ATCO
ATCO shareholders will receive 0.865 Emera shares and one SpinCo share for each ATCO share in the statutory arrangement.
Emera Incorporated (EMA) agreed to acquire ATCO Ltd. and Canadian Utilities Limited in a statutory arrangement, issuing Emera common shares as the share consideration.
Under the plan of arrangement, ATCO shareholders will receive 0.865 of an Emera share for each ATCO share held, plus one Class I non-voting share of SpinCo for each ATCO Class I share and one Class II voting share of SpinCo for each ATCO Class II share.
Canadian Utilities shareholders other than ATCO will receive 0.755 of an Emera share for each Class A non-voting share and 0.819 of an Emera share for each Class B common share.
Emera is a Canadian utility holding company. ATCO is the Calgary-based energy and utilities group; Canadian Utilities is its listed utility subsidiary. As part of the arrangement, ATCO will spin out its industrial services business to SpinCo, a newly formed subsidiary of ATCO.
The companies did not state a premium, a dollar value, or an expected close date in the material provided. The share-for-share ratios above are the pricing terms disclosed for the ATCO and Canadian Utilities equity.
No executive quote, strategic rationale, or precedent-deal context accompanied the announcement in the supplied facts. The transaction is therefore reported on the terms disclosed: Emera Incorporated (EMA) to acquire ATCO Ltd. and the Canadian Utilities shares not held by ATCO, with the industrial services business spun out to SpinCo.
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