Capital Power Completes Major Transaction in Renewable Energy Sector
Capital Power Corporation (TSX: CPX) is thrilled to announce the successful completion of its highly anticipated renewable power asset sell-down transaction. This significant event marked the closing of a 49% interest sale in the Quality Wind facility and the Port Dover and Nanticoke Wind facility, both vital components of the company’s renewable energy portfolio.
Details of the Asset Sale
Previously revealed to stakeholders, this transaction, involving Axium Infrastructure, generated total pre-tax cash proceeds for Capital Power of approximately $340 million. This sum includes a portion allocated for working capital as the company continues to manage its ongoing operations. Even after this transaction, Capital Power will retain its role as the facilities' operator, receiving asset management fees for its services.
Commitment to Indigenous Communities
In line with its values, Capital Power acknowledges its position on ancestral and traditional lands, respecting Indigenous Peoples of Turtle Island, also known as North America. The company's head office is situated in a region rich with the history and presence of various Indigenous communities, particularly in Treaty 6 territory and the Métis Nation of Alberta Region 4. This acknowledgment reflects Capital Power's commitment to reconciliation and recognition of Indigenous cultures, which are integral to society.
About Capital Power Corporation
Capital Power (TSX: CPX) stands as a leading entity in the energy sector, focusing on sustainable energy production. Operating approximately 9,800 MW of power generation capacity across 30 facilities in North America, Capital Power emphasizes delivering reliable and affordable power. Their mission is deeply rooted in creating clean energy solutions and paving the way for a balanced energy future. The motto, "Powering Change by Changing Power™," encapsulates their vision for a greener Tomorrow.
Focus on Clean Energy Development
As a growth-oriented power producer, Capital Power continuously seeks to innovate and enhance its energy generation capabilities. The successful transaction with Axium marks a pivotal step toward strengthening its renewable energy offerings and advancing towards a more sustainable energy landscape.
Strategic Partnerships in Infrastructure
Capital Power's collaboration with Axium Infrastructure highlights the importance of robust partnerships in the infrastructure sector. This strategic alliance not only brings substantial financial backing but also reinforces Capital Power's commitment to investing in core infrastructure assets that bolster long-term value for stakeholders.
About Axium Infrastructure
Axium Infrastructure, encompassing its affiliated entities, operates as an independent portfolio management firm. They are dedicated to driving long-term investment returns by targeting essential infrastructure assets. Axium boasts an impressive portfolio, with over C$11.5 billion in assets under management as of a recent quarter. Their expertise spans decades, and they have successfully invested in more than 265 diversified infrastructure assets. This partnership enhances Capital Power's capabilities as they work collaboratively to achieve sustainable growth and success.
Looking Ahead
With the closure of this transaction, Capital Power is poised for further developments in renewable energy. The company remains committed to its mission of enhancing energy reliability and sustainability while fostering community relationships. As they invest in and operate vital infrastructure, Capital Power continues to focus on balancing environmental priorities with the energy needs of communities.
Frequently Asked Questions
What is the significance of the recent transaction for Capital Power?
The transaction allows Capital Power to enhance its renewable energy portfolio while generating significant cash proceeds, supporting future growth initiatives.
How much did Capital Power gain from the asset sale?
The total pre-tax cash proceeds from the sale are approximately $340 million, including working capital considerations.
What is Capital Power's mission in the energy sector?
Capital Power aims to deliver reliable, affordable power while prioritizing the transition to clean energy, working under the motto "Powering Change by Changing Power™."
Who are Axium Infrastructure?
Axium Infrastructure is an independent portfolio management firm that focuses on generating long-term investment returns through core infrastructure assets.
What role does Capital Power maintain after the sale?
Capital Power will continue to operate the facilities involved in the sale and will receive an asset management fee for its role.
