February 21, 2017 / 2:06 PM / 2 years ago

Veresen to sell its power business for $1.18 billion

(Reuters) - Canadian energy company Veresen Inc VSN.TO said on Tuesday it would sell its power generation business, its largest division, for $1.18 billion in three separate deals.

The Calgary-based company, which owns energy infrastructure assets in Canada and the United States, said it would sell the division and use the proceeds to fund growth projects.

The sale, which is expected to close in the second quarter of 2017, will also allow Veresen to strengthen its balance sheet, as well as focus on its pipeline and midstream businesses.

The company owns 50 percent of a joint venture with New York-based private equity firm KKR & Co LP (KKR.N) called Veresen Midstream, a natural gas midstream business focused on the Montney region, which straddles the Alberta-British Columbia border.

TD Securities Inc is the company’s sole financial adviser on this divestiture. The company didn’t name the buyers.

Reporting by Komal Khettry in Bengaluru; Edited by Martina D'Couto

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