The Tribune

By AVA TURNQUEST

Tribune Digital Editor

aturnquest@tribunemedia.net

EMERA pushed back at the Prime Minister’s "far from ideal" announcement on the planned acquisition of Grand Bahama Power Company yesterday, telling employees there is “no final agreement” despite the Government having already signed a memorandum of understanding.

In a letter dated January 27,  Emera president and chief executive Dave McGregor said discussions with the Bahamian government were ongoing but stressed that any transaction remains unfinished.

“While the discussions are active and have been productive, there is no final agreement at this time,” Mr McGregor wrote.

Prime Minister Philip Davis announced yesterday that the Government had signed an MoU with Emera Inc to acquire Grand Bahama Power Company, with the deal expected to take 60 to 90 days to close.

Mr McGregor said the company had preferred to complete any deal before public disclosure.

“Firstly, I want to acknowledge that hearing this via a press conference from the Prime Minister is far from ideal for our valued employees,” he said. 

“Our overwhelming preference was to ensure we could complete a transaction before any information was shared, but the Prime Minister felt the news could not wait.”

He added that Emera and the Government share “mutual goals” of ensuring reliable electricity at affordable costs for Grand Bahamians, and confirmed that discussions do include a possible option for the Government to purchase the utility.

“Please know we are working closely with the management team on next steps and as discussions continue, we promise to keep you informed of any significant progress or final decision,” Mr McGregor said.

He continued: “I know that a potential change of ownership can feel unnerving and potentially distracting. I urge you to put safety first as you always do. Keep your mind on task, be mindful of your coworkers and continue to focus on delivering for our customers.”

Yesterday, Prime Minister Davis described the MoU as a framework for an acquisition, saying it would mark the first time the Bahamian government has gained control of Grand Bahama Power since the Hawksbill Creek Agreement was signed in 1955.

Government officials have so far declined to provide details on the purchase price, financing structure or whether the state intends to acquire 100 percent ownership or a controlling stake.

Emera previously secured full ownership of Grand Bahama Power after buying out minority shareholders, some of whom received Emera shares via Bahamian Depository Receipts.