Cameco Selling Interest in Ontario Nuclear Facility

Today, Cameco (TSX: CCO  ) (NYSE: CCJ  ) announced it has agreed to sell its 31.6% interest in Bruce Power, the operator of four of the eight reactors at the largest nuclear facility in the world, for $450 million to BPC Generation Infrastructure Trust (Borealis Infrastructure) on behalf of Ontario Municipal Employees Retirement System (OMERS). The sale will increase Borealis’ interest in Bruce Power to 56.1%.

The sale will be made effective Dec. 31, 2013, and it is first subject to approval from the three other limited partners of Bruce Power, TransCanada Pipelines Limited, the Power Workers' Union, and the Society of Energy Professionals, as well as certain regulatory bodies.

"We believe the best option for our shareholders is to sell our interest in Bruce Power and continue to reinvest in our core uranium business where we see strong potential for growth," said Cameco's president and CEO, Tim Gitzel, in a statement. "We are proud of Cameco's role in the creation and success of Bruce Power which has become a key part of Ontario's electricity supply."

Bruce Power has the goal of supplying 30% of the energy to Ontario, and it is Canada's largest public-private partnership. Since its formation in 2001, it has received a total of $7 billion in investment from its partners. Bruce Power also highlighted that as a result of its contract with the Ontario Power Authority, its prices were 30% below average in the province.

"Cameco played a critical role in the formation of Bruce Power in 2001 and [has] been a strong partner, contributing greatly to the success of the site," added Bruce Power's president and CEO, Duncan Hawthorne, in its press release. "However, the outlook of both Bruce Power and Cameco has evolved and this is a unique opportunity for Bruce Power to turn our policy position in the [Long Term Energy Plan] into action, while Cameco can focus on its role as a world leader in the nuclear fuel market through this restructuring."

Borealis manages approximately $10 billion in OMERS equity capital.


Read/Post Comments (0) | Recommend This Article (2)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2818853, ~/Articles/ArticleHandler.aspx, 9/1/2015 10:20:32 AM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

Patrick Morris

After a few stints in banking and corporate finance, Patrick joined the Motley Fool as a writer covering the financial sector. He's scaled back his everyday writing a bit, but he's always happy to opine on the latest headline news surrounding Berkshire Hathaway, Warren Buffett and all things personal finance.

Today's Market

updated Moments ago Sponsored by:
DOW 16,141.53 -386.50 -2.34%
S&P 500 1,928.97 -43.21 -2.19%
NASD 4,687.71 -88.80 -1.86%

Create My Watchlist

Go to My Watchlist

You don't seem to be following any stocks yet!

Better investing starts with a watchlist. Now you can create a personalized watchlist and get immediate access to the personalized information you need to make successful investing decisions.

Data delayed up to 5 minutes

Related Tickers

9/1/2015 10:04 AM
CCJ $13.56 Down -0.50 -3.56%
Cameco Corp (USA) CAPS Rating: *****
CCO $17.81 Down -0.70 -3.78%
CAMECO CORP CAPS Rating: No stars