It’s true the motive behind council’s decision to start looking at potential merger opportunities for St. Thomas Energy is likely the province’s offer to waive the 33 per cent transfer tax on such a transaction.It’s an attractive incentive.
Too bad the city’s utility may not be such an attractive merger prospect.
Its parent, Ascent Group, just held a fire sale and sold off its Ascent Solutions division to Spark Power of Oakville for an undisclosed amount.
A sum ratepayers will never be privy to because Spark Power is still chuckling at the bargain basement price it paid for Tillsonburg-based Tiltran — acquired by Ascent in 2007 — and Belleville operation Tal Trees — acquired in 2009.
So, there is little left in the Ascent cupboard except St. Thomas Energy and a debt load in excess of $20 million.
Not the most attractive package for tire kickers. Continue reading
