Emera buys more of Algonquin Power

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Liberty Energy, a subsidiary of Algonquin Power & Utilities Corp., has scooped up New Hampshire-based electric and natural gas assets for $285-million US.

The assets are currently run by Granite State Electric Company and EnergyNorth Natural Gas Inc., which are owned by National Grid PLC.

On the back of this deal, Emera Inc. is investing $60-million more in Algonquin at $5 per share through subscription receipts that will convert to common shares once the asset sales close.

Emera bought 8.5 million Algonquin common shares, or about 10 per cent of the company, when the utility bought California Pacific Energy Company in 2009. As part of that deal, Emera signed an agreement that allowed it to increase its position to 15 per cent.

National Grid said the sale comes at a multiple of 11.9 times annual EBITDA.

Macquarie Capital Markets Canada served as Algonquin's financial adviser.

Algonquin operates North American renewable power generation and utility infrastructure assets, and already owns some in New England.

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