TORONTO – Just Energy says it’s cutting its dividend and selling its water heater and air conditioning and furnace services business to Reliance Comfort Ltd. Partnership for $505 Million.
The natural gas and electricity retailer says it will cut its annual dividend to 50 cents from 84 cents starting in September.
Toronto-based Just Energy (TSX:JE) says it will repay about $400 million in debt.
The sale is contingent upon approval from the Canadian Competition Bureau and Just Energy lenders.
Just Energy Group Inc. has offices located across the United States, Canada and the United Kingdom and serves more than 2 million residential, commercial and home services customers.
Reliance, also based in Toronto, is a supplier of heating, cooling and water heater rental services and has more than 1,100 employees and serves more than 1.6 million residential and commercial customers.