AbitibiBowater (ABH) to Sell Stake in Hydroelectric Facility for C$615 Million
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AbitibiBowater Inc. (NYSE: ABH) has signed a non-binding agreement in principle with Hydro-Quebec for the sale of its 60% interest in the hydroelectric facility located on the Manicouagan River (the "Facility"), for gross proceeds of C$615 million. Both parties have committed to an expedited timeline, consistent with the Company's comprehensive recapitalization plan also announced today. Due diligence for this transaction is currently under way.
The Facility, located in Quebec, Canada, was established in 1949 and has the capacity to generate approximately 335 MW of electricity. AbitibiBowater, through its Abitibi-Consolidated Company of Canada subsidiary, owns a 60% interest in the Facility.
"This transaction is a key step in AbitibiBowater's overall plan to ensure greater liquidity and financial flexibility," stated David J. Paterson, President and Chief Executive Officer. "Deleveraging the Company's balance sheet is important to all AbitibiBowater stakeholders."
The Company owns additional hydro assets, including an installed share of capacity of 162.5 MW in the province of Quebec.
AbitibiBowater Inc. (AbitibiBowater) produces a range of newsprint and coated and specialty papers, market pulp and wood products globally.[SM]
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