found this tonight: TORONTO, December 13, 2013 - Just Energy Group Inc. (TSX, NYSE: JE) ("Just Energy") is pleased to announce that it has entered into a Share Purchase Agreement (the “Purchase Agreement”) pursuant to which it has agreed to sell all of the issued and outstanding shares of Terra Grain Fuels Inc. (“Terra Grain”), an ethanol producer located in Belle Plaine, Saskatchewan, to a group of Saskatchewan businesses (the “Purchaser”). The sale resulted from a process involving a number of interested parties. Pursuant to the Purchase Agreement, the Purchaser will acquire Terra Grain, including all of its outstanding debt, for a nominal purchase price. Additionally, Just Energy will be released from all of its obligations to service providers to Terra Grain under letters of credit and guarantees. The closing is expected to occur on or before December 24, 2013.
Rebecca MacDonald, Executive Chair of Just Energy, noted: “We are pleased to announce the sale of Terra Grain. From the time that we indirectly acquired the facility with the acquisition of Universal Energy Group Ltd., we have worked to bring the plant up to its production capacity. This was done thereby supporting employment in Saskatchewan and offering a ready market for local wheat producers. However, difficult market conditions for ethanol production confirmed our initial view that this was a non-core asset to Just Energy.”
Ken Hartwick, President & CEO of Just Energy, added: “The sale of Terra Grain removes approximately $68 million of debt from Just Energy’s balance sheet and is an initial step in reducing debt levels. In addition, this transaction allows Just Energy management to continue to focus on its core business. I’d like to thank all of the employees at Terra Grain for their hard and dedicated work over the years and I wish them all the best under their new management.”
