Domtar Signs Agreement for Sale of Ottawa/Gatineau Hydro Assets
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Domtar Corp., Montreal, Qué., Canada, this past week reported that its Canadian subsidiary, Domtar Inc. signed a definitive agreement to sell its hydro assets in Ottawa, Ont., and Gatineau, Qué. for $45 million. The purchaser is Energy Ottawa Inc., the renewable energy subsidiary of Hydro Ottawa Holding Inc. The agreement with Energy Ottawa is subject to customary closing conditions, including certain third party approvals, with closing expected by August 31.
The transaction includes Domtar's three power stations (21 MW of installed capacity), Domtar's water rights in the area, as well as the company's equity stake in the Chaudière Water Power Inc. ring dam consortium. Domtar currently has 12 workers operating its hydro assets in Ottawa/Gatineau and all employees are to become employees of a subsidiary of Energy Ottawa upon closing of the transaction.
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