Cameco Selling Interest in Ontario Nuclear Facility
Today, Camecoannounced it has agreed to sell its 31.6% interest in Bruce Power, the operator of four of the eight reactors at the largest nuclear facility in the world, for $450 million to BPC Generation Infrastructure Trust (Borealis Infrastructure) on behalf of Ontario Municipal Employees Retirement System (OMERS). The sale will increase Borealis' interest in Bruce Power to 56.1%.
The sale will be made effective Dec. 31, 2013, and it is first subject to approval from the three other limited partners of Bruce Power, TransCanada Pipelines Limited, the Power Workers' Union, and the Society of Energy Professionals, as well as certain regulatory bodies.
"We believe the best option for our shareholders is to sell our interest in Bruce Power and continue to reinvest in our core uranium business where we see strong potential for growth," said Cameco's president and CEO, Tim Gitzel, in a statement. "We are proud of Cameco's role in the creation and success of Bruce Power which has become a key part of Ontario's electricity supply."
Bruce Power has the goal of supplying 30% of the energy to Ontario, and it is Canada's largest public-private partnership. Since its formation in 2001, it has received a total of $7 billion in investment from its partners. Bruce Power also highlighted that as a result of its contract with the Ontario Power Authority, its prices were 30% below average in the province.
"Cameco played a critical role in the formation of Bruce Power in 2001 and [has] been a strong partner, contributing greatly to the success of the site," added Bruce Power's president and CEO, Duncan Hawthorne, in its press release. "However, the outlook of both Bruce Power and Cameco has evolved and this is a unique opportunity for Bruce Power to turn our policy position in the [Long Term Energy Plan] into action, while Cameco can focus on its role as a world leader in the nuclear fuel market through this restructuring."
Borealis manages approximately $10 billion in OMERS equity capital.
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