On May 28th, Emera and KKR announced the signing of a formal deal in which KKR would buy Emera’s indirect minority ownership holding in the Labrador Island Link (LIL). The deal value is $1.19 billion CAD, which includes $957 million CAD in cash and $235 million CAD for assuming Emera’s commitment to pay the remaining initial capital investment.
The LIL is a 1,100-kilometer high-voltage transmission line that supplies renewable energy to Newfoundland, Nova Scotia, and beyond, helping to fulfil the region’s rising need for clean energy.
KKR has acquired Emera’s indirect minority ownership investment in the Labrador Island Link (LIL).
On May 28th, Emera and KKR announced the signing of a formal deal in which KKR would buy Emera’s indirect minority ownership holding in the Labrador Island Link (LIL). The deal value is $1.19 billion CAD, which includes $957 million CAD in cash and $235 million CAD for assuming Emera’s commitment to pay the remaining initial capital investment.
Transaction is now compleated.
Emera Inc. has global presence in energy sector and related services. It has an assets of around $39 billion and has registered sales of $7.6 billion in 2023. Firm is headquartered in Halifax, Nova Scotia,
Emera holds assets in Canada, the United States, and three Caribbean nations. Emera’s shares trade on the Toronto Stock Exchange.
Emera, as part of its broader commitment to the Lower Churchill Project, has invested in the LIL’s construction alongside Newfoundland and Labrador Hydro (NL Hydro), the LIL’s owner and operator. Following the acquisition, KKR will receive quarterly distribution payments for the remainder of the 50-year LIL contract, allowing Emera to decrease corporate debt and support investments in its regulated utility companies.
The Lower Churchill Project improves energy infrastructure and facilitates sustainable energy supply between provinces, and it is critical to Atlantic Canada’s energy transformation. The project also includes the Maritime Link, an Emera-owned transmission line that carries renewable energy from Newfoundland to Nova Scotia.
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