The sale of 10 per cent of the shares of Oakville Enterprises Corporation (OEC) to Enbridge Inc. will provide the town-owned company with $47.5 million in investment capital.
Announced in a town-issued press release this week, the sale is described as a strategic partnership that will allow OEC to invest in business growth opportunities.
The Corporation of the Town of Oakville will continue to own 90 per cent of the shares in OEC, which operates a group of 15 energy-related companies, including Oakville Hydro.
"We on Council are happy to welcome Enbridge as a partner in this next chapter of OEC’s growth," said Oakville Mayor Rob Burton.
"Enbridge’s investment takes OEC to its next stage of potential faster than possible without the investment. Our alliance will be a big boost to Council’s 16-year commitment to develop new, non-tax revenues for residents’ new facility and infrastructure expectations without putting pressure on property taxes."
Money from the sale will be reinvested into OEC, according to the press release, which touted the benefits of the partnership for providing "ready capital for municipal infrastructure such as district energy and geo-exchange facilities."
The OEC group of companies offers a range of energy and infrastructure services, including electricity and gas distribution and renewable electricity generation.
Enbridge Inc. is a North American energy infrastructure company traded on the Toronto and New York stock exchanges under the symbol ENB. It will become a minority shareholder in OEC through its subsidiary Enbridge Sustainable Energy Solutions Inc.
"OEC is excited to enter this partnership with Enbridge," said Rob Lister, president and CEO of OEC. "We have a strong history of working with Enbridge and share common values as well as a customer-first approach to everything we do."
He continues, "Enbridge’s North American reach makes them an ideal partner as we continue to expand our operations."
Enbridge’s core businesses include the transportation of crude oil and natural gas, the distribution of natural gas to retail customers in Ontario and Quebec, and the generation of renewable energy.
More information about this announcement is online with the town of Oakville.