MONTREAL, June 13, 2012 (CNW) -Domtar Corporation today announced the signing by its Canadian subsidiary, Domtar Inc. ("Domtar"), of a Definitive Purchase and Sale Agreement ("the agreement") for the sale of its hydro assets in Ottawa, Ontario and Gatineau, Québec for $45 million. The purchaser is Energy Ottawa Inc. ("Energy Ottawa"), the renewable energy subsidiary of Hydro Ottawa Holding Inc. The agreement with Energy Ottawa signed on April 4, 2012 is subject to customary closing conditions, including certain third party approvals, with closing expected by August 31, 2012.
The transaction includes Domtar's three power stations (21 MW of installed capacity), Domtar's water rights in the area, as well as the company's equity stake in the Chaudière Water Power Inc. (CWPI) 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.