Emera Inc. announced today that it has purchased an additional 55.4 percent of direct and indirect interest in Grand Bahama Power Company Limited (GBPC) from MaruEnergy Grand Bahama Limited, an indirect subsidiary of Marubeni TAQA Caribbean Ltd., for US $82 million. The acquisition brings Emera’s direct and indirect interest in GBPC to 80.4 percent.
In 2008, Emera acquired a 25 percent interest in GBPC through its acquisition of 50 percent of the shares of ICD Utilities Limited (ICDU), the holding company listed on The Bahamas International Securities Exchange (ICD-BISX) which holds 50 percent of the shares of GBPC. This acquisition also makes Emera Inc. the majority shareholder of ICDU. The remaining 19.6 per cent of GBPC is held by other ICDU shareholders.
“Emera’s Caribbean presence is strengthened by our majority ownership in Grand Bahama Power,” said Chris Huskilson, President and Chief Executive Officer of Emera Inc. “We look forward to serving the customers on Grand Bahama and bringing the efficiency and reliability of the electrical system on the island up to Emera standards.”
“We welcome Emera’s increased investment in the Grand Bahama Power Corporation,” said Minister Neko Grant, Minister of Public Works and Transport. “We look forward to working with Emera to the mutual benefit of the company and Grand Bahama.”
GBPC is the only utility operator on Grand Bahama Island, serving 19,000 customers. The generation consists of one facility with 137 MW of installed oil-fired capacity. The Grand Bahama Port Authority Limited regulates the utility and has granted GBPC a licensed, regulated and exclusive franchise to produce, transmit and distribute electricity on the Island until 2054. There is a fuel pass through mechanism and flexible tariff adjustment policies to ensure that costs are recovered and a reasonable return is earned.
The transaction is subject to regulatory approvals in the Bahamas. Through its investment in GBPC and ICDU, Emera will appoint a number of new Bahamian members to the GBPC Board of Directors. Emera will finance today’s aquisition through exisiting credit facilities.