Innergex Seals Agreement to be Acquired by CDPQ
Deal News | Feb 25, 2025 | CDPQ
Innergex Renewable Energy Inc. has entered into a definitive agreement to be acquired by CDPQ for CAD $13.75 per common share. The transaction also involves preferred shares, with conditions ensuring immediate liquidity and a substantial premium for shareholders. This strategic move is backed by Innergex's prominent shareholders and involves a detailed syndication plan led by CDPQ to enhance future growth prospects. The acquisition underscores CDPQ's commitment to renewable energy and community collaboration in Quebec. The deal is subjected to regulatory and shareholder approvals and involves financial backing through a $1.2 billion senior financing plan.
Sectors
- Renewable Energy
- Private Equity
Geography
- Canada – Both Innergex and CDPQ are headquartered in Quebec, Canada, making this geography significant for the acquisition.
Industry
- Renewable Energy – Innergex is a leading renewable energy company in North America, focusing on sustainable energy solutions, making this industry highly relevant to the acquisition.
- Private Equity – CDPQ, a private equity firm, is acquiring Innergex, highlighting the private equity sector's involvement in facilitating acquisitions in the energy industry.
Financials
- 13.75 – The price per share offered by CDPQ for each common share of Innergex.
- 25.00 – The price per preferred share of Series A and C offered by CDPQ as part of the transaction.
- 1.2 billion – The new senior bank financing amount secured by CDPQ to facilitate the acquisition and related expenses.
- 83.9 million – The termination fee applicable under certain circumstances if the transaction is not completed.
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| Innergex Renewable Energy Inc. | Target | Company | A leading renewable energy company in North America, involved in the development and operation of sustainable energy projects. |
| CDPQ | Bidding Company | Private Equity | A significant institution in the private equity sector, focusing on sustainable investment and acquiring Innergex as part of their growth strategy. |
| BMO Capital Markets and CIBC Capital Markets | Financial Advisors | Company | Providing financial advice and fairness opinions for the transaction. |
| Hydro-Qubec | Supporting Shareholder | Company | A major shareholder in Innergex, holding approximately 19.9% of its outstanding common shares. |
| Greenhill & Co. Canada Ltd. | Independent Financial Advisor | Company | Providing fairness opinions and independent financial advice to the Special Committee. |
| TD Securities and Moelis & Company LLC | Financial Advisors | Company | Acting as financial advisors to CDPQ and facilitating new senior bank financing. |
| Fasken Martineau DuMoulin LLP | Legal Counsel to CDPQ | Company | Providing legal advisory services to CDPQ for the transaction. |
| Norton Rose Fulbright Canada LLP | Legal Counsel to Special Committee | Company | Providing legal advice to the Special Committee overseeing the transaction. |