Canada's NS Power to buy Bangor Hyrdo

NS Power Holdings Inc., Halifax, NS, Friday said it will acquire Bangor Hydro-Electric Co, an electricity and transmission concern serving central and eastern Maine, for $26.50/share in cash, or about $206 million. Upon completion of the transaction, Bangor Hydro will become a wholly owned subsidiary of NS Power Holdings, a diversified energy and services company and owner of Nova Scotia Power Inc., the province of Nova Scotia's primary electricity supplier.


NS Power Holdings Inc., Halifax, NS, Friday said it will acquire Bangor Hydro-Electric Co, an electricity and transmission concern serving central and eastern Maine, for $26.50/share in cash, or about $206 million. Upon completion of the transaction, Bangor Hydro will become a wholly owned subsidiary of NS Power Holdings, a diversified energy and services company and owner of Nova Scotia Power Inc., the province of Nova Scotia's primary electricity supplier.

NS Power also has a 12.5% interest in the Maritimes & Northeast Pipeline, which delivers Sable Island natural gas to markets in Canada and the northeastern US.

"We are executing our strategy of leveraging superior operational expertise and customer service in electricity transmission and distribution in a new marketplace," said David Mann, president and CEO of NS Power Holdings.

"Our approach to growth has been deliberate and careful. Bangor Hydro is a regulated business, and strategically, it means we further capitalize on our core competencies. NS Power already has business interests in Maine through our ownership stake in the Maritimes & Northeast Pipeline, so this transaction is a natural fit for us."

Bangor Hydro Pres. Robert S. Briggs said the transaction will be good for the company as it will become part of a larger organization with greater resources. Bangor Hydro's outstanding debt and preferred stock will not be affected by the transaction, according to the companies.

Bangor Hydro will continue to be regulated by the Maine Public Utilities Commission. It currently has an allowed return on equity of 11 %. Bangor Hydro is a member of the New England Power Pool and is interconnected with other New England utilities to the south and with New Brunswick Power Corp. to the north.

The transaction is subject to the approval of Bangor Hydro shareholders of regulatory agencies, including the Maine Public Utilities Commission, the US Securities and Exchange Commission, and the US Federal Energy Regulatory Commission.

BMO Nesbitt Burns Inc. acted as financial advisor to NS Power Holdings Inc., and Salomon Smith Barney Inc. acted for Bangor Hydro.

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