Abitibi-Consolidated Completes Energy Generation Venture - Hydro Assets in Ontario Regrouped into ACH Limited Partnership
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MONTREAL, April 2 -- Abitibi-Consolidated Inc. announced today that it has closed the transaction with the Caisse de depot et placement du Quebec, announced by the Company in January 2007, creating ACH Limited Partnership, a joint-venture for the Company's Ontario hydroelectric generation facilities. Abitibi-Consolidated has retained a 75% equity interest in the joint-venture and the Caisse has acquired a 25% equity interest. The Caisse has also provided to ACH Limited Partnership a 10-year unsecured term loan of $250 million, non-recourse to Abitibi-Consolidated, to partially fund the acquisition of the facilities.
The transaction, on a consolidated basis, has yielded gross proceeds of $297.5 million to Abitibi-Consolidated.
ACH Limited Partnership encompasses eight hydroelectric facilities located in Ontario, representing an aggregate installed capacity of 136.8 MW and a normalised annual generation of approximately 828 GWh.
ACH Limited Partnership is intended to be Abitibi-Consolidated's growth vehicle in energy generation. Abitibi-Consolidated's substantial ownership interest in the joint-venture reflects the ongoing strategic importance of its electricity generation assets. Abitibi-Consolidated has entered into agreements with ACH Limited Partnership by virtue of which it will continue to operate and manage the facilities. Scotia Capital and CIBC World Markets have advised the Company in regards to this transaction.
About Abitibi-Consolidated
Abitibi-Consolidated is a global leader in newsprint and commercial printing papers as well as a major producer of wood products, serving clients in some 70 countries from its 45 operating facilities. Abitibi-Consolidated is among the largest recyclers of newspapers and magazines in North America, diverting annually approximately 1.7 million tonnes of waste paper from landfills. It also ranks first in Canada in terms of total certified woodlands. Abitibi-Consolidated shares are traded on the Toronto Stock Exchange (TSX: A) and on the New York Stock Exchange (NYSE:ABY).
CONTACT:
Investors:
Francesco Alessi,
Vice-President, Investor Relations and Taxation,
(514) 394-2341,
falessi@abitibiconsolidated.com
Media and others:
Denis Leclerc,
Director, Public Affairs,
(514) 394-3601,
denis_leclerc@abitibiconsolidated.com
Source: ABITIBI-CONSOLIDATED INC.
