08/31/2015 17:55 EDT | Updated 08/31/2016 01:12 EDT

Fortis reaches deal with Belize government over 2011 expropriation

ST. JOHN'S, N.L. — Fortis Inc. (TSX:FTS) says it reached an agreement with the Belize government over the expropriation of its approximately 70 per cent interest in Belize Electricity Ltd. in June 2011.

Fortis says the settlement includes a one-time, US$35-million cash payment by the Central American country and a reduction of the company's common equity position in the utility to about 33 per cent.

Belize Electricity is the primary distributor of electricity in Belize, and includes a indirect wholly owned subsidiary, Belize Electric Co. Ltd. with three generating facilities with a combined generating capacity of 51 megawatts.

Completion and implementation of the settlement is subject to legislative approval and other conditions, all of which are expected to be completed in the coming weeks, the company says.

Fortis, which had revenue of $5.4 billion in 2014, has some $28 billion in assets. Its regulated utilities serve more than three million customers across Canada and in the United States and the Caribbean.

The Canadian Press