Canadian pension fund Caisse de dépôt et placement du Québec (CDPQ) is set to acquire local clean energy firm Innergex Renewable Energy in a deal worth up to CAD10bn, subject to shareholder approval.
CDPQ, an institutional investor which manages some CAD473bn on behalf of several public pension plans is set to commit to a significant place-based investment in its regional energy transition.
Until the closing of the transaction, CDPQ will seek 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 though the transaction is not conditional upon such syndication, CDPQ said.
Under the agreement, Innergex shareholders will receive CAD13.75 per share in cash, representing a 58% premium on its last closing price and an 80% premium on its 30-day average.
The deal has been unanimously approved by Innergex’s board of directors and is backed by its largest shareholder, Hydro-Québec. However, it remains subject to approval by Innergex’s common shareholders at a formal vote, along with regulatory clearances.
CDPQ, which has invested in Innergex since 1995, plans to maintain the company’s headquarters in Longueuil and continue its renewable energy expansion. The acquisition is expected to be completed by the fourth quarter of 2025.
CDPQ has invested just short of CAD130 in listed equities, it has currently invested some CAD93bn in Quebec and aims to deploy CAD100bn in the region by 2026.
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