Province moves to lift restriction on foreign ownership of Emera Inc. shares

The Nova Scotiagovernment is moving to lift restrictions on foreign ownership of shares of Halifax-based energy company Emera Inc.

Amendments to the Nova Scotia Power Privatization Act and Nova Scotia Power Reorganization Act will also see the requirement that Emera and subsidiary Nova Scotia Power maintain their head offices and principal executives in Nova Scotia.

Business Minister Geoff MacLellan said Wednesday the change related to stock ownership will help the company continue to grow. Currently, Emerais capped at no more than 25 per cent of its voting shares being owned by non-Canadians.

"Frankly, Nova Scotia has seen too many head offices come and go, or come and stay in name only," he said. "Public corporations like Emera need to be able to use shares to grow their operations."

Emera is the only one of 100 investor-owned utilities in North America with restrictions on foreign ownership, said MacLellan. Those restrictions were put in place in 1998, when Emera was created as a holding company following the privatization of Nova Scotia Power.

The legislation will maintain the rule that no outside entity can hold or control more than 15 per cent of Emera's voting shares and it prevents a takeover by prohibiting shareholders from teaming up.

The company has investments in various parts of North Americaandreportedrevenues of $6.5 billion last year.

MacLellan said requiring the head offices to remain in Nova Scotia wasn't a case of quid pro quo, and Emera's chief legal and compliance officer, Bruce Marchand, said there has never been any threat of either office leaving the province.

"We've always been committed to Nova Scotia and there's never been a question in our minds or discussion about anything other than that," he told reporters at Province House.

No change for NSP ratepayers

Marchand said the company to date has not been challenged by access to capital, but as it grows there will be a need to reach a broader group of investors.

"In order to grow, which is our mission to grow this company you need access to equity capital and this provides much greater flexibility than we have today," he said.

"We're now at a size where that becomes ever more challenging."

Marchand said about 19 per cent of shares are held by non-residents, which is the highest it's been to date.

Both changes stem from efforts within the Business Department to reduce business red tape, which eventually pointed to the effects on competitiveness for Emera, said MacLellan.

Marchard said the changes would have no effect for Nova Scotia Power ratepayers.