May 12, 2017 / 11:25 AM / in a year

BRIEF-Fortis and Teck announce Waneta Dam agreement

May 12 (Reuters) - Fortis Inc

* Fortis and teck announce waneta dam agreement

* Fortis inc- teck expects to realize a net book gain of approximately $800 million on the closing of the transaction

* Fortis - fortis will buy teck’s two-thirds interest in waneta dam and related transmission assets in british columbia, canada, for $1.2 billion cash

* Fortis inc - fortis will finance the transaction through a combination of cash on hand, debt and equity

* Fortis inc - the waneta dam will operate as a non-regulated energy infrastructure subsidiary of fortis inc

* Fortis inc- the transaction is expected to be immediately accretive to earnings per share

* Fortis inc - under agreement, teck metals ltd. Will be granted a 20-year lease to use co’s two-thirds interest in waneta

* Fortis - teck has committed $174 million for second new acid plant which is currently under construction and scheduled to be operational in summer 2019

* Fortis inc - teck metals will have an option to extend the lease for a further 10 years at comparable rates

* Fortis - no cash tax will be payable on the proceeds from the deal

* Fortis inc - teck will pay a break fee to fortis in event bc hydro exercises its right of first offer Source text for Eikon: Further company coverage:

0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below