Topic: How To Invest

The Successful Investor Hotline – Friday, March 29, 2019

Article Excerpt

EMERA INC., $49.97, Toronto symbol EMA, owns 100% of Nova Scotia Power, that province’s main electricity supplier. It also holds interests in several power plants and natural gas pipelines in the U.S. and the Caribbean. The company has now agreed to sell its regulated power transmission and distribution business in Maine to ENMAX Corp., the utility company owned by the City of Calgary. Emera will receive $959 million U.S. for that business. ENMAX will also assume $500 million U.S. worth of debt, bringing the total value of the deal to roughly $1.8 billion (Canadian). The company expects to complete the sale by the end of 2019. The cash will let Emera pay down the loans it needed to buy Teco Energy for $13.9 billion in July 2016. That firm supplies electricity and natural gas to customers in Tampa Bay, Florida, and New Mexico. As of December 31, 2018, the company’s long-term debt was $14.3 billion, or a high 1.2 times its $11.8 billion market…

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