TORONTO, September 24, 2003 – Brascan Corporation (NYSE: BNN, TSE: BNN.a,) announced today the acquisition of three hydroelectric power plants located in northeastern United States from Hafslund, a Norweigan-based power company, for approximately US$30 million, including working capital.
This transaction, which is expected to close before the end of the year, includes the Pontook and Errol plants located twenty miles apart on the Androscoggin River in New Hampshire and Brassua, located on the Moose River in Maine. Together these three power generating facilities, which are interconnected with the New England power grid, have a total generating capacity of 16.5 megawatts.
"Brascan`s growth strategy in the power business is focused on the acquisition of high quality assets which generate long term sustainable cash flows. The acquisition of these low cost, well maintained power generating facilities, strengthens our position as a key participant in the Northeastern U.S. power market. The facilities provide strategic advantages and operating synergies when combined with our existing operations in New England, particularly the six power generating facilities we already own on the Androscoggin River just downstream of the Pontook and Errol facilities," commented Harry Goldgut, Co-Chairman and Chief Executive Officer of Brascan Power.
The completion of this transaction brings to 42 the total number of Brascan`s generating facilities across New Hampshire, Maine, Ontario, Quebec, British Columbia and Louisiana, and total generating capacity to 1700 megawatts.
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Brascan is a real estate, power generation and asset management company whose objective is to earn a superior return on equity by operating businesses which produce consistent and sustainable cash flows. With direct investment of US$15 billion and a further US$5 billion of assets under management, Brascan owns 50 high quality office properties and 42 power generating plants.
Within Brascan`s areas of expertise, the company either invests directly or through the capital markets in high quality assets and lends bridge or mezzanine capital to owners that are willing to share their equity returns.
The company is listed on the New York and Toronto stock exchanges under the symbol BNN and BNN/a respectively.
For more information, please visit our web site at www.brascancorp.com or contact:
Katherine C. Vyse
Senior Vice-President
Investor Relations and Communications
Tel: 416-369-8246
kvyse@brascancorp.com