Emera mum about Dominican takeover musings

It has been reported that the Caribbean nation of Dominica may be considering a takeover of the island’s electricity utility, Dominica Electricity Services Ltd. (Domlec), which is majority owned by Emera Inc. of Halifax.

Dominica News Online reported that Dominica Prime Minister Roosevelt Skerrit announced at a news conference that his government “is not ruling out the possibility of engaging the main shareholder of Domlec with the view of the government acquiring the majority shares in Domlec.”

The Domlec website describes Dominica, at 754 square kilometres, as the third-largest English speaking island in the Caribbean and with about 75,000 residents.

Dina Bartolacci Seely, who speaks on behalf of Emera, said Tuesday that the company has nothing to share at this time and would not comment on regular discussions it has with government or regulators.

According to Dominica News, the prime minister stated that his government has a good relationship with Domlec management and the majority shareholder, but it is his belief “that the issue of water and electricity should remain in the hands of the state.”

“So, it’s not like we have any issues with them, but we believe, especially with the advent of the geothermal and our thrust towards the use of renewable energy, I think this will place Dominica in a much better position,” Skerrit was quoted as saying.

“I am throwing this out to the public, but as the days and weeks go by I will be in a better position to firm up the government’s position in respect to this matter.”

According to Dominica News, if a takeover happens it would not be the first time the government held controlling interest in Domlec. In 1993, the company offered a two-for-one rights issue to shareholders. Although many declined the offer, the government of the day increased its holding in Domlec to 72.9 per cent.

In March 1997, Dominica’s Commonwealth Development Corp. purchased 72.8 per cent of the shares from the government, taking over as the majority shareholder.

In May 2004, WRB Enterprises of Tampa, Florida acquired 52.8 per cent and Dominica Social Security 20 per cent of Commonwealth Development’s shares in Domlec.

In April 2013, Light & Power Holdings Ltd. of Barbados, a majority-owned subsidiary of Emera Inc., acquired a 52 per cent interest in Domlec from WRB Enterprises, according to the news outlet.

Emera’s subsidiary, Emera Caribbean Inc., is parent company of Grand Bahama Power Co. and Barbados Light & Power, a majority shareholder in Domlec, and an investor in St. Lucia Electricity Services Ltd.

According to Emera, its Caribbean utilities generate and deliver electricity to more than 227,000 residential, commercial and industrial customers.

Emera Inc. of Halifax has nothing to report about the status of its investment in Dominica Electricity Services Ltd.