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Canada Reaches Agreement to Divest Ridley Terminals Inc.
TORONTO, July 12, 2019- The Canada Development Investment Corporation (CDEV) announces today that Canada has reached an agreement to sell 90 per cent of its shares in Ridley Terminals Inc. (RTI), a federal Crown corporation, to a company owned by Riverstone Holdings and AMCI Group. The company will acquire 90 per cent of Canada’s shares of RTI. The remaining 10 per cent of Canada’s shares will be transferred to a limited partnership owned by the Lax Kw’alaams Band and the Metlakatla First Nation at the close of the sale to the Riverstone-AMCI company. The sale to the Riverstone-AMCI company will be subject to successful completion of a review by the Competition Bureau and other customary closing conditions.
Established in 1983, RTI operates on Ridley Island near Prince Rupert, British Columbia, where it transfers bulk commodities from rail cars onto ocean-going vessels. The primary commodities handled by RTI are coal, petroleum coke and liquefied petroleum gas (LPG).
On November 5, 2018, following Canada’s engagement and consultation with six First Nations in the area, CDEV launched a competitive sale process to divest RTI with the objective of obtaining the best value for Canada from a buyer who will operate RTI on a long-term, sustainable basis and with open access. The agreement with the Riverstone-AMCI company is the culmination of this sale process, a process that considered a wide range of interest from potential investors and involved continuous engagement with six local First Nations.
Through the agreement, the Riverstone-AMCI company has agreed to pay Canada $350 million for 90 per cent of Canada’s shares in RTI. After accounting for dividends from RTI to Canada, RTI’s current book value and transaction costs, the Government of Canada can expect an estimated net fiscal gain of approximately $100 million from the divestment of RTI.
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