Winnipeg Hydro Acquired

Manitoba Hydro, with annual revenues of $1.8 billion, purchased the assets and business of Winnipeg Hydro from the City of Winnipeg on September 3, 2002. Winnipeg Hydro has annual revenues of $130 million.

The transaction involved complex debt assumption and debt issuance arrangements, and perpetual annual payments by Manitoba Hydro in favour of the city. The purchase price is being paid through a series of perpetual annual payments starting at $25 million per year and declining over time to $16 million per year together with a further monetary benefit of $1 million per year to the City of Winnipeg through the provision of services and from participation in the Manitoba Hydro Power Smart programmes.

Manitoba Hydro was represented in-house by Ken Tennenhouse, general counsel and corporate secretary and Bob Bettner, senior counsel, and by Aikins, MacAulay & Thorvaldson with a team that included James Ferguson, Doug Sigurdson, Nigel Thompson, Colin Pewarchuk and Jennifer Jones (corporate), Jim Foran, Q.C., and Lucia Stuhldreier (legislation), Allan Foran, Michelle Redekopp and J.J. Burnell (pension), Wells Peever, Q.C., (due diligence), Carmele Peter (debt structuring), Steven Kohn and Robert Sly (tax), Gerry Parkinson and Tyler Kochanski (labour), David Carrick and Brian Bowman (technology and privacy) and Chuck Chappell (municipal).

The city was represented in-house by Len Strijack, senior counsel, and by Taylor McCaffrey in Winnipeg with a team that included Douglas Finkbeiner and Nicole Merrick (corporate), Len Lucas (pension), Ronald Coke (technology and securities), Eric Lister (real estate), Kenneth Dolinsky and Cynthia Lazar (labour).