The Globe and Mail reports in its Tuesday, Nov. 24, edition that unnamed sources say Capstone Infrastructure ($3.35) is working with
bankers to explore a sale.
A Bloomberg dispatch to The Globe reports that sources say Capstone hired Toronto-Dominion
Bank and the Royal Bank of
Canada to advise on the process.
Capstone oversees a portfolio
of infrastructure businesses ranging
from gas co-generation, wind,
hydro, water and biomass power-generating
facilities. It has operations across Canada and in the United Kingdom and Sweden. Sources say potential
suitors for Capstone include
Brookfield Asset Management ($45.57), and some Canadian pension
and infrastructure funds.
Larger utilities that are
involved in power generation as
well as regulated utilities may
also have some interest in the
company, such as Algonquin
Power & Utilities ($10.74), says National Bank Financial analyst Rupert
Merer.
He says, "It is a bit of a diversified basket, which would tend to suggest that only the larger diversified utilities would acquire them." Capstone's shares are down 25 per cent in the 12 months through Friday, after it was handed an unfavourable rate decision for its Bristol Water business in December.
© 2024 Canjex Publishing Ltd. All rights reserved.