Canexus Agrees to Sell NATO Asset

Canexus Agrees to Sell NATO Asset

Posted on Monday June 08, 2015 at 09:27AM

CALGARY, AB--(Marketwired - June 04, 2015) - Canexus Corporation has entered into an agreement to sell its North American Terminal Operations ("NATO") in Bruderheim, Alberta to Cenovus Energy Inc. for $75 million cash consideration, subject to adjustment. The Purchase and Sale Agreement has an economic effective date of June 30, 2015, and closing is expected for August 31, 2015, subject to certain closing conditions. All net proceeds will be used to pay down bank debt.

The NATO transaction includes the unit train and manifest operations, pipeline connections as well as certain above and below ground storage capabilities. NATO was identified as a non-core asset after a portfolio review in August 2014, at which time the Corporation hired financial advisors to begin a process to sell the asset. A robust process was executed over several months, including extensive due diligence completed by a number of interested parties.

Click here to read the full news release.

Author: Lamont County Now


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