CNW

Domtar closes sale of its Ottawa/Gatineau hydro assets to Energy Ottawa affiliate for $46 million

Thu, Nov 22, 2012
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MONTREAL, Nov. 23, 2012 (CNW) -Domtar Corporation today confirmed the November 20 closing of its previously announced Definitive Purchase and Sale Agreement ("the agreement") signed by its Canadian subsidiary, Domtar Inc., for the sale of its hydro assets in Ottawa, Ontario and Gatineau, Québec. The purchaser is Chaudière Hydro L.P. ("Chaudière Hydro"), the newly-created affiliate of Energy Ottawa Inc.

The approximately $46 million transaction, after closing adjustments, 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. (CWPI) ring dam consortium. With the closing of the agreement, the 12 workers currently operating the three power stations become employees of Chaudière Hydro.

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