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The Electric Utilities Act (1995) marked the beginning of the restructuring of the Alberta electricity sector, which historically had been dominated by vertically integrated utilities. TransAlta Utilities Corporation (TransAlta), one of the original integrated utilities, decided to transform itself into a competitive electric generation and marketing company. As part of this transformation, TransAlta decided in 2001 to divest its electric transmission business. This presented an opportunity upon which Macquarie was quick to capitalize.
Macquarie took the lead role in identifying potential buyers and eventually formed a winning consortium, AltaLink L.P., of which Macquarie was a key member. The consortium consisted of four, best of class, industry participants:
- Macquarie North America, a leading financial advisor and a leader in Canadian infrastructure finance and funds management
- SNC-Lavalin Inc., one of the world’s largest engineering and construction firms and a global leader in the ownership and management of infrastructure
- Ontario Teachers’ Pension Plan Board, one of Canada’s largest pension funds
- Trans-Elect Inc., an independent, non-utility affiliated electric transmission company working to create a North American network of independently owned and operated electric transmission systems.
After an intensive due diligence and negotiation process involving the expertise of all consortium members, the consortium executed a purchase and sale agreement with TransAlta on July 4 2001.
Following regulatory approval from the Alberta Energy and Utilities Board on March 28 2002, AltaLink L.P. acquired the transmission business on April 29 2002 for approximately $850 million. Macquarie North America, as financial advisor to AltaLink L.P., performed the valuation and due diligence, managed external technical advisors and coordinated the negotiations. Macquarie North America continues to provide financial advice to Altalink L.P., assisting management in a variety of projects.
For more information on AltaLink L.P. see our asset description or visit the AltaLink L.P. website.
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