Canada reaches agreement to sell Ridley Terminals

Canada has reached an agreement to sell 90 percent of its shares in federal Crown corporation Ridley Terminals Inc. (RTI) in Prince Rupert, British Columbia, to a company owned by Riverstone Holdings and AMCI Group, the Canada Development Investment Corp. (CDEV) announced last week.

The remaining 10 percent of Canada's shares in RTI will be transferred to a limited partnership owned by the Lax Kw'alaams Band and the Metlakatla First Nation at the close of sale, CDEV officials said in a press release.

The Riverstone-AMCI entity has agreed to pay Canada CA$350 million for its shares. After accounting for dividends, RTI's current book value and transaction costs, the government can expect an estimated net fiscal gain of about CA$100 million, CDEV officials said.

The sale is subject to a review by the Competition Bureau and other closing conditions. In November 2018, CDEV launched a competitive sale process to divest RTI.

Established in 1983, Ridley Terminals operate on Ridley Island in Prince Rupert, where they transfer bulk commodities from rail cars onto ocean-going vessels. The primary commodities shipped through the terminal are coal, petroleum coke and liquified petroleum gas.