Regulatory delay pushed up final price

Article Excerpt

EMERA INC. $33 (Toronto symbol EMA; Income Portfolio, Utilities sector; Shares outstanding: 114.0 million; Market cap: $3.8 billion; Price-to-sales ratio: 2.4; Dividend yield: 3.9%; TSINetwork Rating: Average; www.emera.com) has completed its purchase of California Pacific Electric Co., which generates and distributes electricity to 47,000 customers in Lake Tahoe, California. Emera bought this business through a 50/50 partnership with Algonquin Power & Utilities Corp. (Toronto symbol AQN), which holds interests in 45 renewable-power facilities in Canada and the northeastern U.S., as well as 14 thermal-energy plants and 19 water-distribution and waste-water facilities. When the partners announced the purchase in April 2009, the price was $116 million U.S. However, the slow pace of regulatory approvals pushed up the final price to $132 million U.S. Emera’s share is $66 million U.S. That’s equal to 1.5 times the $44.8 million, or $0.39 a share, it earned in the three months ended September 30, 2010. As part of the deal, Emera now owns 8.2% of…

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