Pension-fund giant CDPQ has agreed to acquire Quebec-based Innergex Renewable Energy in an all-cash transaction through a plan of arrangement.

The deal has a total enterprise value at $10 billion, including debt, and, according to The Globe and Mail, values Innergex equity at $2.8 billion. If all goes according to plan, CDPQ will take the firm private.

Innergex operates in Canada, the U.S., France and Chile and manages a large portfolio of high-quality assets currently consisting of interests in 90 operating facilities with an aggregate net installed capacity of 3,707 megawatts. The company’s assets 42 hydroelectric facilities, 36 wind farms, nine solar facilities and three battery energy-storage plants. Innergex also holds interests in 17 projects under development and numerous other prospective projects.

Under the definitive agreement, CDPQ is slated to purchase all outstanding common shares of Innergex for $13.75 per share, a 58% premium over its Monday closing price of $8.71 on the Toronto Stock Exchange and an 80% premium over the 30-day volume-weighted average price of $7.66.

Hydro-Québec, Innergex’s largest shareholder with a 19.9% stake, has entered into a support and voting agreement with CDPQ to vote in favour of the transaction, which has been unanimously approved by Innergex’s board of directors.

“We are proud to support Innergex as it embarks on this new chapter, guided by a long-term vision, access to capital, and readiness to seize growth opportunities,” said Emmanuel Jaclot, executive vice-president and head of infrastructure at CDPQ. “This investment perfectly illustrates our constructive capital and dual mandate in action.”

Innergex chair Monique Mercier said the board concluded the deal is in the best interests of the company and fair to its shareholders.

“We are pleased to be announcing a transaction which not only provides our shareholders with immediate liquidity at an attractive premium, but also positions Innergex for long-term success under the private ownership of CDPQ,” she said.

CDPQ intends to syndicate up to 20% of its investment to like-minded investors. The transaction is expected to close by the fourth quarter of 2025, subject to shareholder and regulatory approvals and other customary conditions.

But the agreement also allows Innergex to accept another matching or superior bid subject to an $83.9-million termination fee. CDPQ would face a reverse termination fee in the same amount if key regulatory approvals are not obtained on time.

Photo: Innergex