Parent of Retail Supplier Sells Non-Core Business

Just Energy Group Inc. announced that it has entered into a Share Purchase Agreement pursuant to which it has agreed to sell all of the issued and outstanding shares of Terra Grain Fuels Inc., an ethanol producer, to a group of unnamed Saskatchewan businesses.

Pursuant to the Purchase Agreement, the purchaser will acquire Terra Grain, including all of its outstanding debt, for a "nominal" purchase price, Just Energy said.

Additionally, Just Energy will be released from all of its obligations to service providers to Terra Grain under letters of credit and guarantees.

The closing is expected to occur on or before December 24, 2013.

The sale of Terra Grain removes approximately $68 million of debt (Canadian $) from Just Energy’s balance sheet and is an initial step in reducing debt levels, the company said.

Rebecca MacDonald, Executive Chair of Just Energy, noted that the ethanol business was included in Just Energy's acquisition of retail supplier Universal Energy Group Ltd., and that Just Energy considered the ethanol business a "non-core asset."