Tecumseh Mayor Applauds Amherstburg Decision
Tecumseh Mayor Gary McNamara says if Amherstburg had sold its stake in Essex Power, the buyer wouldn’t have been Entegrus.
The three other shareholders in Essex Power would have first had the option to buy back shares as part of the $12-million bid from Chatham-Kent utility Entegrus.
“For us the decision would’ve been, ‘do we bring in a new partner or do we buy the shares?'” Says McNamara. “Well, realisticly we would’ve bought the shares. I mean, there’s no question.”
According to McNamara, the town’s 26.6% stake in Essex Power is too valuable an asset to let go as the company has grown from a valuation of $19-million in 2000 to roughly $100-million today. Tecumseh receives about $600,000 a year in dividends from Essex Power.
As a shareholder, Tecumseh received a report at its latest meeting on its options should Amherstburg sell its shares, but the report turned out to be moot with Amherstburg deciding not to sell at a special meeting on May 6.