Centrica plc confirmed today that, following its announcements of
9 December 2002 and 3 January 2003, an underwritten equity offering has been launched in Toronto that will reduce Centrica’s residual interest in The Consumers’ Waterheater Income Fund (the ‘Fund’) (TSX: CWI.UN) from 41.9 per cent to 19.9 per cent. When the offering, which is subject to customary underwriting conditions, closes on or about 8 April, Centrica will receive C$112 million (£48 million) in net proceeds.
The independent Fund was established in order to purchase approximately 1.3 million waterheater assets, which Centrica obtained when it acquired Enbridge Services Inc in May 2002. Upon completion of this secondary offering, Centrica will have derived net proceeds of C$856 million (£364 million) from the establishment of the Fund. We retain an equity interest of 19.9 per cent in the fund (market value of C$111 million (£47 million) at close of business on 6 March, 2003).