| TORONTO, Sept 29
TORONTO, Sept 29 Canadian energy company Veresen
Inc has hired Toronto Dominion Bank to sell its
power business, which could be worth about C$1 billion ($758.90
million), according to two people familiar with the situation.
The Calgary-based company, which owns energy infrastructure
assets in Canada and the United States, said last month that it
would sell the division and use the proceeds to fund growth.
The move would also allow Veresen to reduce its debt, as
well as focus on its pipeline and midstream businesses.
While no longer seen as core to Veresen's strategy, the
power business is considered attractive as the assets have
long-term contracts, providing owners with a steady cash flow
stream, the people said, declining to be identified as the
matter is not public.
Private equity firms, infrastructure-focused funds and
pension funds are seen as potential bidders for the asset, the
OMERS-backed Borealis and Canadian power companies are also
likely to take a close look, one of the sources said.
Veresen did not immediately respond to a request for
The company has pipeline, midstream and power assets. It
also owns 50 percent of a joint venture with KKR & Co LP
called Veresen Midstream, a natural gas midstream business
focused on the Montney region that straddles the Alberta-British
($1 = 1.3177 Canadian dollars)
(Reporting by John Tilak; Editing by Alan Crosby)