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Allete, Inc. (ALE), a U.S. power utility and renewable energy developer, entered into a definitive merger agreement on May 6 with a partnership led by Canada Pension Plan Investment Board and Global Infrastructure Partners, valued at $6.2 billion.
Under the terms of the agreement, U.S. investment management company GIP and Canada’s pension fund CPP Investments will be taking the Duluth, Minnesota-based company private by acquiring it for $67 per share, representing a premium of 4.25% from the stock’s last close.
Allete’s CEO Bethany Owen will continue in her role after the deal is closed, which is expected in mid-2025.
Allete, with thousands of customers in northern Minnesota and northwestern Wisconsin, operates wind, solar, coal-fired, biomass, and hydroelectric power generation assets across the Upper Midwest.
Reuters had first reported about the clean energy company exploring a sale in December last year. The present cash offer of $67 per share for Allete represents a 19% premium to the company’s closing share price on December 4.
For a comprehensive breakdown of the deal, please refer to the following link: Deal Metrics for the acquisition of ALLETE, Inc (ALE) by Canada Pension Plan Investment Board and Global Infrastructure Partners.
Editor’s Note: Baranjot Kaur contributed to this article
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