AltaGas buying Heritage from SaskEnergy, Scotia
Last Updated: Tuesday, November 3, 2009 | 1:18 PM AT
CBC News
SaskEnergy and Scotia Investments have sold their shares in a natural gas distribution company in Nova Scotia to an Alberta company.
AltaGas Utility Group, which already owns 24.9 per cent of Heritage Gas Limited, will buy the remaining 75.1 per cent in the deal.
Based in Dartmouth, N.S., Heritage Gas has 2,261 customers in Amherst and Cumberland County, Dartmouth, Halifax and the Halifax International Airport — far fewer than first expected.
Despite the change at the top, it will be "business as usual," said Heritage Gas president Ray Ritcey.
"We have an owner that knows our history over the last six years. And our current plans for the future look extremely promising, and that's in part recognized in the value that was paid for the company," he told CBC News.
Proceeds to SaskEnergy and Scotia will be $73.3 million and $36.5 million for their respective 50.1 per cent and 24 per cent shares.
The sale of Heritage Gas is subject to conditions, including approval under the Competition Act.
The Saskatchewan government, which owns SaskEnergy, said the Crown corporation made a good return on its investment. It put $55 million into Heritage Gas in 2002.
The sale is in tune with the Saskatchewan government's "Saskatchewan first" policy, in which investments are focused inside the province.
The companies involved expect the sale could be closed by the middle of the month, pending regulatory approval.
