City of Toronto sells its portion of Enwave to fund capital infrastructure|
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Today, City Council authorized the joint sale of the Enwave Energy Corporation to a partnership sponsored by Brookfield Asset Management.
"As international players in real estate, renewable energy and infrastructure investments, Brookfield is a great fit for the continued growth and expansion of Enwave," said Mayor Rob Ford. "We're very pleased that Brookfield has recognized the value in Enwave's record of steady financial improvement, healthy cash generation and growth opportunities."
Brookfield will take ownership of Enwave's entire debt and equity upon closing of the sale, expected later this month. The City will receive approximately $168 million, which will be used for the 2013 Capital Plan requirements.
"The City would like to thank its partner in this endeavour, Borealis Infrastructure, the infrastructure investment arm of OMERS, for its stewardship of the company since its inception," said Mayor Ford. "I also want to thank the management team at Enwave, led by CEO Dennis Fotinos, for making the company what it is today."
As part of the 2012-2021 Capital Budget and Plan approved in January 2012, operating budget surpluses, proceeds from the sale of non-core City assets and expected provincial and federal assistance will be used to inject non-debt financing of $700 million to pay for transit projects in the City's capital budget.
"Although the City has made significant progress in bringing expenses more in line with its revenues in the operating budget, we need to start focusing on our outstanding debt that is expected to increase in our capital budget," said Budget Chair Mike Del Grande (Ward 39 Scarborough-Agincourt). "The sale comes at a perfect time for the City to monetize the value created in Enwave and to reduce the City's debt requirements by selling non-core assets."
At its meeting on November 29, 30 and December 1, 2011, City Council initiated the sale process of 100 per cent of the Enwave Energy Corporation, which is jointly owned by the City (43 per cent) and Borealis Infrastructure (57 per cent). The approval for the sale of Enwave comes after an international, competitive auction, which generated considerable interest from around the globe.
The City's forecasted growth in net debt in its capital budget and 10-year plan is expected to increase from $2.6 billion at the end of 2011 to peak to $4.2 billion in 2018, and decrease to $3.5 billion by 2021.
Toronto is Canada's largest city and sixth largest government, and home to a diverse population of about 2.7 million people. Toronto's government is dedicated to delivering customer service excellence, creating a transparent and accountable government, reducing the size and cost of government and building a transportation city. For information on non-emergency City services and programs, Toronto residents, businesses and visitors can dial 311, 24 hours a day, 7 days a week.
|Press Secretary, Office of Mayor Rob Fo|
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|Manager, Media Relations and Issues Management|
| Alex Mozo|
|Communications Coordinator, Finance|