Boards of Directors endorse merger exploration to shareholders
October 1, 2020
October 1, 2020 – Brantford, Brant, Cambridge, North Dumfries, Ontario – The Boards of Directors of Brantford Energy Corporation and Cambridge and North Dumfries Energy Plus Inc., the holding companies for Brantford Power Inc. and Energy+ Inc. are pleased to announce they have endorsed a joint Memorandum of Understanding (MOU) to explore a potential merger transaction.
Each Board has endorsed a Memorandum of Understanding to their respective shareholder(s), the City of Cambridge, the Township of North Dumfries and the City of Brantford to participate in independent financial reviews and business analysis to explore the benefits and risks of a consolidation of the holding companies, the affiliates and the local electricity distribution companies Energy+ Inc. and Brantford Power Inc.
An MOU, if signed by all stakeholders, would be the “green light” to commence reviewing the benefits and risks of a potential merger of the holding companies, their affiliates and the regulated electric utility operations. The two local electricity distribution companies service Cambridge, North Dumfries, Brant County and Brantford.
The decision to explore the advantages and risks of a consolidation by all stakeholders is one step in a complex and lengthy journey that can take the better of a year or more.
No further information is available at this time.
Backgrounder
The decision by the Boards of Directors to endorse exploring the benefits of merging is driven by:
1) Experience has demonstrated that the consolidation of electric utilities across Ontario has resulted in positive outcomes for the shareholders, the customers and the employees;
2) The Ontario government’s ongoing attention on local distribution companies (LDCs) finding efficiencies through consolidation: and,
3) Ontario electric utilities are rapidly changing, introducing technological advancements in response to customer wants and needs.
About Cambridge and North Dumfries Energy Plus Inc.
Cambridge and North Dumfries Energy Plus Inc. owns and operates unregulated affiliate businesses and Energy+ Inc., a regulated subsidiary that distributes electricity and value-added services to more than 67,000 customers. The City of Cambridge (92.1%) and Township of North Dumfries (7.9%), own the holding company, Cambridge and North Dumfries Energy Plus Inc.
About Brantford Energy Corporation
Brantford Energy Corporation (BEC) operates as a holding company for two businesses – Brantford Power Inc., and Brantford Hydro Inc. BEC’s sole shareholder is the Corporation of the City of Brantford. A key strategic priority for BEC is to be active in the changing electricity distribution sector and pursue opportunities for collaboration or new relationships that may add value to Brantford Power. Brantford Power operates and maintains a distribution system serving over 40,000 residential, commercial and industrial customers within the City of Brantford
For more information please contact:
Sheri Ojero
Manager, Communications & Stakeholder Relations
Email: [email protected]
brantfordpower.com @BrantfordPower
Barbara Shortreed
VP Customer Care & Communications
Email: [email protected]
www.energyplus.ca @EnergyPlusInc