Following the announcement by Light & Power Holdings concerning the change of shareholding from Leucadia to Emera, there may be questions about the implications and subsequent impact of the change to our employees, customers, shareholders and other stakeholders. The following questions and answers seek to address some of these issues
Who is Emera?
Emera Inc. is an energy and service Company with $5.3 billion in assets. Electricity is Emera’s core business. Approximately 94% of Emera’s revenues are earned by Nova Scotia Power Inc, Bangor Hydro Electric Company and the Brunswick Pipeline, a natural gas pipeline servicing the maritime provinces of Canada. Emera also has strategic investments in renewable energy businesses.
What have they paid for the shares?
The purchase by Emera was not of shares in Light & Power Holdings (LPH), but of the company CI Power, which owns Light & Power Holdings (LPH) shares, and which until now has been owned by Leucadia National Corporation. Emera Inc. through their ownership of CI Power now controls the 38% interest in LPH.
Are they now a majority shareholder?
No. They own less than 50%. However, Emera¸ through their ownership of CI Power, will be the largest single shareholder in LPH with 38% of its shares. The 62% majority of the interest in LPH is held by approximately 2,700 Barbadian shareholders, including 23% which is owned by the National Insurance Board of Barbados.
How is this going to affect the operation of The Barbados Light & Power Company (BL&P)?
This is a positive step.
Emera Inc. will bring value to BL&P through their experience and knowledge in the electric utility and energy business. Emera has a positive view of the operating performance of BL&P and will look to support the continued development of the Company’s operations.
How does this affect the other shareholders?
The partnership is viewed as positive for all shareholders. In the immediate sense, since the shareholder of record (CI Power) is still the same, there will be no change. Shareholders will have the opportunity to raise any questions relating to the investment by Emera at the upcoming Annual General Meeting of the Shareholders of LPH that is scheduled to take place on Thursday, May 20, 2010.
How does this sale affect TeleBarbados?
Leucadia has been the majority shareholder of the investment in telecommunications including TeleBarbados and the subsea fiber cable, and has been the leader in this investment. LPH will sell its interest in this venture to Leucadia, who will now take over full ownership of the telcom investment. LPH considers that its investment in the telcom has been very positive for Barbados, bringing greater international telecommunications capacity to the island and providing telcom customers with a choice of service provider.
What is the relation of BL&P and Light & Power Holdings (LPH)?
LPH is the parent company of BL&P. BL&P is the sole electricity utility operation in Barbados serving 120 000 customers.
Was this sale negotiated prior to Rates?
This development is not connected to the BL&P rate review. Emera Inc. had expressed their interest in LPH to Leucadia National Corporation several years ago and approached Leucadia once again several months ago, prior to the rate hearing commencing. The timing of this transaction is not related to the rate hearing.
Is the timing of this beneficial to the Company and to Barbados?
It is expected that with the investment by Emera Inc., there can be enhancements and improvements to the benefit of employees, electricity customers and to the overall economy of Barbados.