Toronto Hydro Corporation Announces the Sale of Toronto Hydro Telecom Inc.
JUN 13, 2008 - 16:00 ET
TORONTO, ONTARIO--(Marketwire - June 13, 2008)
Toronto Hydro Corporation announced today that it has entered into a definitive agreement to sell the shares of its wholly-owned subsidiary, Toronto Hydro Telecom Inc. ("THTI"), to Cogeco Cable Inc. ("Cogeco Cable") (TSX:CCA) for $200 million in cash, which is subject to certain closing adjustments.
Under the terms of the agreement, subject to customary closing conditions, the sale is expected to close on July 31, 2008.
"This sale enhances our ability to invest in the renewal of our distribution system," said David O'Brien, President and Chief Executive Officer of Toronto Hydro Corporation.
About Cogeco Cable Inc.
Cogeco Cable ( www.cogeco.ca), is a telecommunications company offering a diverse range of services to its customers in Canada and in Portugal, and is the second largest cable operator in Ontario, Quebec and Portugal, in terms of the number of Basic Cable service customers served. Through its two-way broadband cable networks, Cogeco Cable provides its residential and commercial customers with Analogue and Digital Television, High Speed Internet, Telephony and Data services. The Corporation provides approximately 2,625,000 revenue-generating units (RGUs) to 2,390,000 homes passed in its Canadian and Portuguese service territories. Cogeco Cable's subordinate voting shares are listed on the Toronto Stock Exchange (TSX:CCA).
About Toronto Hydro Corporation
Toronto Hydro Corporation is a holding company which through its wholly-owned subsidiaries:
- Toronto Hydro-Electric System Limited ("LDC") - distributes electricity;
- Toronto Hydro Energy Services Inc. - provides energy efficiency products and services, and delivers street lighting and expressway lighting services; and
- Toronto Hydro Telecom Inc. - leases fibre optic cable capacity and provides data communication services.
The principal business of Toronto Hydro Corporation is the distribution of electricity by LDC. LDC owns and operates an electricity distribution system which delivers electricity to approximately 680,000 customers located in the City of Toronto. LDC is the largest municipal electric distribution company in Canada.
Certain portions of this press release may constitute forward-looking information. Forward-looking information means disclosure regarding possible events, conditions or results that is based on assumptions about future economic conditions and courses of action or attributable to third parties. In some cases, forward-looking information can be identified by terminology such as "may", "will", "should", "expect", "anticipate", "believe", "estimate", "predict", "potential", "continue", "plan" and similar expressions or the negative of these terms or other comparable terminology. Although the corporation believes that it has a reasonable basis for the forward-looking information included in the press release, such information is subject to a number of risks, uncertainties and assumptions that may cause actual events, conditions or results to differ materially from those contemplated by the forward-looking information. Some of the factors that could cause such differences include legislative or regulatory developments; financial market conditions, general economic conditions and the ratings assigned to the corporation or its affiliates or their debt securities by rating agencies. The corporation has no obligation nor any intention to update publicly or to revise any of the forward-looking information included in the press release after the date thereof, whether as a result of new information, future events or circumstances or otherwise.
FOR FURTHER INFORMATION PLEASE CONTACT:
For more information or to arrange an interview, please
contact: Toronto Hydro Corporation
Blair Peberdy, Vice-President, Marketing, Communications and
Public Affairs and Chief Conservation Officer
Toronto Hydro Corporation
VP, Treasurer and Regulatory Affairs