NS Power Moves Into U.S. With Maine Merger
Taking the first step to move across the Canadian border, NS
Power Holdings Inc. announced plans to merge with its U.S.
neighbor, Maine's Bangor Hydro-Electric Co.
The Halifax, NS-based company, which owns 100% of Nova Scotia's
electric utility, agreed to pay $26.50 a share, or $206 million in
cash for the Maine company --- about 77% more than the price at
Bangor Hydro's close at the time of the announcement.
Most important, the Maine connection will give the Canadian
company a base to launch more initiatives into the region,
something the company is expected to do.
"Nova Scotia and Maine are good neighbors, with similar
geography and service environments," said NS Power's CEO David
Bangor Hydro's business is focused only on electricity
transmission and distribution, and it will continue to be regulated
by the Maine Public Utilities Commission.
Mann said Bangor Hydro's name would not change, and he did not
expect any personnel changes to be made. The merger, which would
make Bangor Hydro a subsidiary of NS Power, is expected to be
completed within a year. The Maine electric utility serves about
110,000 customers and is a member of the New England Power Pool.
The merger will give NS Power its first stake on U.S. soil. With
$2.9 billion in assets, it had $532 million in sales last year, and
its utility has 440,000 customers. NS Power also has a 12.5%
interest in the Maritimes & Northeast Pipeline.
Carolyn Davis, Houston
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