TransCanada to sell its solar assets and focus on $24bn capital program
Canadian Energy giant TransCanada has announced that it will be selling its Ontario solar portfolio to a subsidiary of Axium Infrastructure Canada – Axium Infinity Solar LP.
The agreement will see TransCanada’s eight solar power facilities in Ontario that generate 76MW annually sold in a deal worth $540mn, having bought the assets for a total of $470mn between 2013 and 2014.
The sale of the company’s non-core solar assets its part of its strategy to focus on its $24bn worth of core projects.
“This transaction demonstrates our financial discipline as we continue to build on our vision of being North America's leading energy infrastructure company,” said Russ Girling, TransCanada's President and Chief Executive Officer. “The proceeds from this sale will help fund our $24 billion near term capital program while maximizing value for our shareholders.”
This includes the company’s recent purchase of Columbia Pipeline Group back in July for a total price of approximately US$13bn.
Further, in addition to its renowned pipeline network, TransCanada owns or has interests in approximately 6,200MW of power generation the US and Canada alone.
The transaction is expected to close before the years’ end, subject to customary agreements.