Canadian uranium miner Cameco Corp yesterday agreed to sell its stake in Bruce Power, an operator of nuclear generating facilities in Ontario, to BPC Generation Infrastructure Trust (Borealis), for C$450 million ($403 million).
Cameco will sell its 31.6 per cent stake in Bruce Power, which operates four of the eight reactors at the world's largest nuclear generating facility in Tiverton, Ontario.
Post sale, Borealis will become the majority partner of Bruce Power with 56.1 per cent stake. The other partners include the Power Workers' Union and the Society of Energy Professionals.
"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 Tim Gitzel, Cameco's president and CEO. "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."
Michael Rolland, president and CEO of Borealis, ''Bruce Power is an investment that continues to fit with our long-term strategy to invest in core, large-scale and high-quality infrastructure assets. It also plays a critical role in meeting the supply needs of the province of Ontario.''
Closing of the transaction is subject to exercise or waiver of the right of first offer held by the other three limited partners, TransCanada Pipelines Limited, the Power Workers' Union and the Society of Energy Professionals, and receipt of certain regulatory approvals.
Bruce Power is located on a 2,300-acre site on the shores of Lake Huron having eight reactors.
Bruce Power generates 6,300 megawatts, providing power to over one in four hospitals, homes schools and businesses in Ontario.