AltaGas to sell midstream, power assets to Birch Hill, Avenue for $560 mln
Calgary-based utility AltaGas Ltd (TSX: ALA) has agreed to sell non-core midstream and power assets for about $560 million. AltaGas will sell domestic small-scale gas midstream and power assets, as well as its commercial and industrial customer portfolio in Canada, to Birch Hill Equity Partners, a Canadian private equity firm. The purchase price is about $165 million. The transaction includes 43.7 million shares held by AltaGas in Tidewater Midstream and Infrastructure Inc. It will also sell gas-fired power assets located in California's San Joaquin Valley to Middle River Power, a private equity affiliate of U.S. investment firm Avenue Capital Group. The purchase price is close to $400 million (US$300 million). Both deals are expected to close before the end of the year.
