Canadian Utilities agrees to sell Canadian power business for $835 million

(Reuters) - Canadian Utilities Ltd said on Monday it has agreed to sell its entire Canadian fossil fuel-based electricity generation portfolio for about $835 million, ending a strategic process for the assets that the company began last year.

The agreement with Heartland Generation Ltd, an affiliate of Energy Capital Partners, includes 11 partly or fully owned natural gas-fired and coal-fired electricity generation assets located in Alberta, British Columbia, and Ontario, with a combined generating capacity of about 2,100 megawatts (MW).

RBC Capital Markets and J.P. Morgan are acting as joint financial advisors to Canadian Utilities for the sale of the Canadian fossil fuel-based power generation business, expected to close in the second half of this year.

In a separate transaction, the company said it agreed to sell its 50% ownership interest in the 260 MW Cory Cogeneration Station, located outside Saskatoon, Saskatchewan, to SaskPower International.

Following the closing of the agreements, Canadian Utilities will have about 250 MW of electricity generation assets located in Canada, Mexico and Australia.

ASHCOR Technologies, the Oldman River Hydro Facility, and international projects are being retained by Canadian Utilities, the company said in a statement.

(Reporting by Saumya Sibi Joseph in Bengaluru; Editing by Andrea Ricci)