Canadian pension fund Caisse de Depot et Placement du Quebec, Montreal, has agreed to acquire Innergex Renewable Energy in a deal that values Innergex at C$10 billion ($7 billion), said a news release Feb. 25.
Under terms of the deal, CDPQ will acquire all outstanding common shares of Innergex for C$13.75 per share in cash. The pension fund will also acquire all outstanding preferred shares of Innergex for C$25 per share in cash.
The C$13.75 per-share price represents a premium of about 58% to the closing price of the Innergex common stock on the Toronto Stock Exchange as of Feb. 24.
Based in Quebec, Innergex is an independent renewable power producer that develops, acquires, owns and operates hydroelectric facilities, wind farms, solar farms and energy storage facilities.
"While we strive for optimal returns, we are committed to supporting essential businesses headquartered in Quebec, such as Innergex, which plays a key role in the energy transition and autonomy," said Emmanuel Jaclot, executive vice president and head of infrastructure at CDPQ, in the news release.
Michel Letellier, president and CEO of Innergex, said in the release that the company will continue to operate from its headquarters in Longueuil, Quebec, “which will remain central to our global operations.”
The proposed transaction remains subject to approval by Innergex’s common shareholders and other customary closing conditions, including regulatory approvals.
The transaction is expected to close by the fourth quarter.
CDPQ has a long-standing relationship with Innergex, having made its first investments in the company in 1995. Over the years, CDPQ has made multiple investments and is now Innergex's second-largest shareholder after Hydro-Quebec, which owns 19.9% of Innergex outstanding common shares.
As of June 30, 2024, CDPQ’s had $C452 billion in net assets.
Neither CDPQ nor Innergex could be immediately reached for further details.
