* Says to sell 75 pct stake for cash proceeds of C$300 mln
* Says sells it to a consortium of investors and a pvt co
Feb 11 (Reuters) - AbitibiBowater Inc agreed to sell its 75 percent interest in the Ontario hydroelectric project to a consortium formed by a major Canadian institutional investor and a private renewable energy company for cash proceeds of C$300 million ($303.6 million).
The newsprint maker, which emerged from bankruptcy in December, said it will use $100 million from the sale of ACH Ltd Partnership immediately to reduce debt while the rest will be used to enhance liquidity and for general corporate purposes.
Following the completion of the transaction, expected in the next 60 days, ACH LP will continue to supply electricity to AbitibiBowater Canada Inc.'s Fort Frances and Iroquois Falls pulp and paper mills.
As part of the transaction, the Caisse de depot et placement du Quebec has also agreed to sell its 25 percent stake in ACH.
ACH will also maintain its outstanding debt with the Caisse with a face value of C$250 million.
The agreement values the hydel assets, which have a combined capacity of about 131 MW, at around C$640 million, AbitibiBowater said in a statement.
CIBC World Markets Inc acted as financial advisor to AbitibiBowater.
Shares of company closed at C$29.18 on Friday on the Toronto Stock Exchange. They touched C$29.66, its highest levels since it emerged from bankruptcy.
($1= 0 .9880 CANADIAN DOLLAR)
(Reporting by Aftab Ahmed in Bangalore; Editing by Joyjeet Das)
(aftab.ahmed@thomsonreuters.com; within U.S. +1 646 223 8780;
outside U.S. +91 80 4135 5800; Reuters Messaging: aftab.ahmed.reuters.com@reuters.net))
Keywords: ABITIBIBOWATER/
COPYRIGHT Copyright Thomson Reuters 2011. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.
* Says sells it to a consortium of investors and a pvt co
Feb 11 (Reuters) - AbitibiBowater Inc agreed to sell its 75 percent interest in the Ontario hydroelectric project to a consortium formed by a major Canadian institutional investor and a private renewable energy company for cash proceeds of C$300 million ($303.6 million).
The newsprint maker, which emerged from bankruptcy in December, said it will use $100 million from the sale of ACH Ltd Partnership immediately to reduce debt while the rest will be used to enhance liquidity and for general corporate purposes.
Following the completion of the transaction, expected in the next 60 days, ACH LP will continue to supply electricity to AbitibiBowater Canada Inc.'s Fort Frances and Iroquois Falls pulp and paper mills.
As part of the transaction, the Caisse de depot et placement du Quebec has also agreed to sell its 25 percent stake in ACH.
ACH will also maintain its outstanding debt with the Caisse with a face value of C$250 million.
The agreement values the hydel assets, which have a combined capacity of about 131 MW, at around C$640 million, AbitibiBowater said in a statement.
CIBC World Markets Inc acted as financial advisor to AbitibiBowater.
Shares of company closed at C$29.18 on Friday on the Toronto Stock Exchange. They touched C$29.66, its highest levels since it emerged from bankruptcy.
($1= 0 .9880 CANADIAN DOLLAR)
(Reporting by Aftab Ahmed in Bangalore; Editing by Joyjeet Das)
(aftab.ahmed@thomsonreuters.com; within U.S. +1 646 223 8780;
outside U.S. +91 80 4135 5800; Reuters Messaging: aftab.ahmed.reuters.com@reuters.net))
Keywords: ABITIBIBOWATER/
COPYRIGHT Copyright Thomson Reuters 2011. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.