Light & Power Holdings Ltd. (LPH) of Barbados has said that it has signed a letter of intent to acquire controlling interest in Dominica Electricity Services Ltd. (DOMLEC) from WRB Enterprises Inc. of Tampa, Florida.
In a press release, LPH said both companies are working to have the transaction completed before the end of 2012.
DOMLEC is the sole electric utility for Dominica, serving 34,000 customers. WRB owns 52 percent of DOMLEC, with 21 percent held by Dominica Social Security Scheme and the remainder by other investors.
“The acquisition of DOMLEC is consistent with our strategy to build a business of scale in the Caribbean,” LPH Managing Director Peter Williams said in the press release. “We believe our operational expertise, and our commitment to stabilizing customer costs by introducing alternative sources of energy for electricity generation, create new potential for adding value to the benefit of customers in Dominica. We also look forward to maintaining a productive relationship with local investors, including the Dominica Social Security Scheme.”
“WRB is proud of our association with DOMLEC, and with accomplishments at the company over many years,” said WRB’s President, Bob Blanchard, Jr. “This has not been an easy decision but we have come to know LPH and believe this decision will enhance the capacity of DOMLEC to serve its customers.”
Blanchard added that LPH and WRB are working together to implement a continuity plan to ensure change of control activities occur with customer service and employee alignment as a priority.
The release said LPH and WRB have also agreed they will collaborate in the future on development of new renewable energy projects in the Caribbean.
Light & Power Holdings, an investment company with electricity being its core business, is a majority-owned subsidiary of Emera Inc., an energy and services company based in Halifax, Nova Scotia. LPH has a majority interest in The Barbados Light & Power Company Limited, which has been serving electricity customers in Barbados since 1911, and holds a minority interest in St. Lucia Electricity Services. The Common Shares of Light & Power Holdings are quoted on the Barbados Stock Exchange.