CDPQ has successfully secured the Innergex board’s approval for its acquisition proposal
This CAD 10 billion deal values Innergex at a 58% premium over its current share price
The transaction provides immediate liquidity along with the financial backing of one of the world’s leading pension funds
Canada-headquartered renewable energy company Innergex Renewable Energy has received a green signal from its board of directors to go ahead with the all-cash CAD 10 billion ($7 billion) takeover offer of pension manager Caisse de Depot et Placement du Quebec (CDPQ), including debt.
CDPQ values Innergex at CAD 13.75 ($9.59)/share, a 58% premium over the company’s current share price of CAD 8.71 ($6.08)/share. It is already the 2nd largest shareholder of the Canadian company after Hydro-Québec. The latter is also selling all of its 19.9% share to CDPQ.
The pension fund manager also plans to syndicate up to 20% of its invested capital to bring in ‘like-minded investors who share its vision for the next chapter of Innergex’s growth,’ before the transaction closes by Q4 2025.
Innergex’s current portfolio of 4.663 GW DC/3.707 GW AC comprises 42 hydroelectric, 36 wind, 9 solar and 3 battery energy storage system (BESS) facilities spread across Canada, the US, France and Chile. It also holds interest in 17 projects with 1.577 GW DC/945 MW AC combined capacity currently under construction, with another 10.28 GW at various stages of development.
Innergex says this transaction provides immediate liquidity and certainty of value to its shareholders. It also brings the Canadian group the financial and strategic backing of CDPQ.
The President and CEO of Innergex, Michel Letellier added, “This move allows us to leverage their resources and expertise, while continuing to operate from our Longueuil headquarters, which will remain central to our global operations. This is great news for everyone involved, as it provides the stability and flexibility to pursue our goals without the distractions of market volatility.”
CDPQ hopes to secure ‘optimal returns’ with the acquisition of Innergex, which has been around for the last 35 years in the North American renewable energy space, but this is not the pension fund manager’s maiden renewable energy investment. CDPQ is also the largest stakeholder in US-based renewable energy company Invenergy and is significantly invested in India’s Apraava Energy, among others.