Caisse de dépôt et placement du Québec (CDPQ) has agreed to acquire Canada-based clean energy company Innergex Renewable Energy in a deal that represents a total enterprise value of C$10bn ($6.98bn).
Under the terms of the definitive agreement, CDPQ will acquire all issued and outstanding common shares of Innergex for C$13.75 ($9.6) per share in cash.
In addition, CDPQ will acquire all issued and outstanding Series A and C preferred shares of Innergex for C$25 ($17.45) per share in cash, along with accrued and unpaid dividends.
The consideration represents a 58% premium over Innergex’s closing price of C$8.71 ($6.08) on the Toronto Stock Exchange (TSX) as of 23 February 2025 and an 80% premium over its 30-day volume-weighted average price of C$7.66 ($5.35).
Through the deal, CDPQ aims to establish a Québec-based renewable power leader poised for expansion.
Innergex is an independent renewable power producer that develops, acquires, owns, and operates hydroelectric facilities, wind farms, solar farms, and energy storage facilities.
The company operates across Canada, the US, France, and Chile, managing a diverse portfolio of renewable energy assets.
Currently, it holds interests in 90 operational facilities with a net installed capacity of 3.7GW. These include 42 hydroelectric facilities, 36 wind farms, nine solar power plants, and three battery energy storage facilities.
Additionally, Innergex has 17 projects under development with a net installed capacity of 945MW, including six projects under construction.
The company also has a pipeline of prospective projects at various stages of development, with a total gross installed capacity of 10.3GW.
Innergex CEO and president Michel Letellier said: “As we transition from being a publicly traded company to a privately held entity, this change marks an exciting new chapter in our journey.
“CDPQ shares our commitment to sustainability, growth as well as long-term value, hence together, we will be able to achieve even greater success.”
Following the completion of the transaction, Innergex intends to delist its common shares, convertible debentures, and preferred shares from the TSX.
If approved by Series A preferred shareholders, the company will also apply to cease being a reporting issuer under Canadian securities laws.
CDPQ, which has been an investor in Innergex since 1995, plans to syndicate up to 20% of its invested capital to bring in additional investors.
The acquisition will be financed through CDPQ’s cash reserves and a fully underwritten C$1.2bn ($840m) senior financing facility.
CDPQ executive vice-president and infrastructure head Emmanuel Jaclot said: “This investment perfectly illustrates our constructive capital and dual mandate in action: while we strive for optimal returns, we are committed to supporting essential businesses headquartered in Québec, such as Innergex, which plays a key role in the energy transition and autonomy.”
Hydro-Québec, Innergex’s largest shareholder with a 19.9% stake, has committed to vote in favour of the transaction. Subject to shareholders’ approval as well as regulatory and court approvals, the transaction is expected to be completed by Q4 2025.
