|Date Announced:||September 12, 2018|
|Date Closed:||September 12, 2018|
|Client Name:||ATCO Ltd.|
ATCO has acquired a 40 per cent of Neltume Ports, a leading port operator and developer in South America, for approximately CAD$450 million (USD$340 million). Neltume Ports, a subsidiary of Ultramar, operates in 16 port facilities and three stevedoring businesses primarily located in Chile and Uruguay.
ATCO will fund its investment in Neltume Ports with a combination of cash on-hand and funds from committed credit facilities, and later refinance a portion through a capital markets transaction. ATCO will acquire a 40 per cent interest in Neltume Ports through the issuance of new shares from Neltume Ports. Funds from ATCO’s investment will be used by Neltume Ports to finance opportunities for growth. The acquisition is expected to be accretive to ATCO’s earnings per share in the first full year of ownership, as well as deliver sustainable profitability through the execution of Neltume’s growth plans.