The company signed a Definitive Purchase and Sale Agreement to sell the assets for $45M, subject to customary closing conditions, including certain third party approvals, with closing expected by 31 August 2012.
The deal includes Domtar's three power stations with 21MW of installed capacity, Domtar's water rights in the area, as well as the company's equity stake in the Chaudière Water Power Inc ring dam consortium. Domtar currently has 12 workers operating its hydro assets in Ottawa/Gatineau and all employees are to become employees of a subsidiary of Energy Ottawa upon closing of the transaction.
