La Caisse de dépôt et placement du Québec has completed its acquisition of Innergex Renewable Energy in an all-cash transaction through a plan of arrangement.

As part of the deal, La Caisse has also taken Innergex private. 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.

“Innergex is a Canadian renewable-energy leader and plays a key role in the energy transition,” said Emmanuel Jaclot, executive vice-president and head of infrastructure at La Caisse. “To shift into a higher gear, the company needed shareholders aligned with its long-term potential, protected from stock market cycles. That’s why we brought together a syndicate of Quebec and international investors who share this vision.

“This privatization immediately provides Innergex with increased financial agility to accelerate the development of large-scale projects. It is a reflection of Innergex’s potential and Quebec’s leadership in the energy transition.”    

Longueuil, Que.-based 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 include 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 purchased all outstanding common shares of Innergex for $13.75 per share, a 58% premium over its $8.71 price on the Toronto Stock Exchange at the time the deal was announced. That price also marked 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, supported the deal.

CDPQ syndicated up to 20% of its investment to like-minded investors.

Photo: Innergex