The City of Calgary Engages Investment Banks to Pursue Enmax Divestiture Options

-- City of Calgary Chief Executive Officer Dale Stanway has announced that two investment banks, CIBC World Markets Inc. and Morgan Stanley Canada Limited, have been engaged by The City to pursue alternatives to maximize the value to The City of its subsidiary ENMAX Corporation, including soliciting expressions of interest for the purchase of ENMAX.

In February of this year, City Council directed City Administration to provide ongoing evaluations of The City's investment in ENMAX.

On July 24, City Council resolved to authorize the Chief Executive Officer (CEO) and the Chief Financial Officer (CFO) of The City to pursue opportunities to sell ENMAX.

The City invited proposals from national and international investment banks that have experience in corporate divestitures and public offerings to advise City Administration in respect of a potential sale of ENMAX. After extensive interviews with a number of experienced and qualified investment banks, City Administration determined that a combination of CIBC World Markets Inc. and Morgan Stanley Canada Limited would best address The City's requirements.

"There were a number of excellent choices. CIBC World Markets and Morgan Stanley were selected because, in our opinion, they demonstrated the most relevant experience and expertise to achieve our objectives," said Stanway.

On behalf of The City, the investment banks will pursue a full range of opportunities with respect to ENMAX.

ENMAX is an electricity distribution, transmission and retail supply and services company, wholly owned by The City of Calgary with assets exceeding $1 billion CDN. The business is carried out through three primary subsidiary companies: ENMAX Energy Corporation, which competes against other retailers in Alberta to provide customers with energy supply and services; ENMAX Power Corporation, which owns, operates and maintains the distribution and transmission system that transmits electricity to customers in Calgary and some surrounding areas; and ENMAX Encompass Inc., which provides billing, customer care and other customer services for ENMAX and a number of municipalities through a call centre in Calgary.

ENMAX was incorporated in 1997 when the government of Alberta commenced deregulation of the electrical industry.