Private equity firm KKR KKR-N would acquire Canadian energy firm Emera’s EMA-T indirect minority stake in the Labrador Island Link (LIL) clean energy transmission project for $1.19-billion, the companies said on Tuesday.
Commissioned in 2023, the LIL is a 1,100-kilometer high voltage transmission line that delivers renewable energy to Newfoundland, Nova Scotia and beyond.
The transaction, which is expected to close on or about June 4, is made of $957-million in cash and $235-million for taking over Emera’s obligation to fund the rest of the initial capital investment.
Proceeds from the deal will be used to reduce Emera’s debt and support its investment opportunities in its regulated utility businesses, the companies said.