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CPPIB strikes USD-6.1bn deal to take Pattern Energy private

Grady Wind facility in New Mexico. Image by Pattern Development (www.patterndev.com)

November 4 (Renewables Now) - Canada Pension Plan Investment Board (CPPIB) has struck a deal to take Pattern Energy Group Inc (NASDAQ:PEGI) private at an enterprise value of about USD 6.1 billion (EUR 5.47bn), including debt, the parties announced today.

CPPIB has agreed to pay USD 26.75 per share in cash, which is a premium of some 14.8% to Pattern Energy's closing on August 9, 2019, the last trading day before market rumours regarding a potential acquisition emerged.

According to Alan Batkin, chairman of the Pattern Energy board of directors, a special committee of independent directors had “reviewed multiple bids as part of a thorough process that involved multiple parties.” It has concluded that a deal with CPPIB is in the best interest of the company's shareholders.

At the same time, CPPIB has agreed with private investor Riverstone Holdings LLC to combine Pattern Energy and Pattern Energy Group Holdings 2 LP, also known as Pattern Development, under common ownership upon completion of Pattern Energy’s acquisition by the Canadian investment manager. That move would bring together the operating assets of Pattern Energy with the project development capabilities of Pattern Development.

Presently, Pattern Energy has 28 wind and solar parks with an operating capacity of 4.4 GW, located in the US, Canada and Japan. On the other hand, Pattern Development has a track record of developing, financing and placing into operation over 4 GW of wind and solar projects.

Pending stockholder and regulatory approvals, CPPIB’s takeover of Pattern Energy is seen closing by the second quarter of 2020.

Evercore and Goldman, Sachs & Co LLC serve as independent financial advisors to Pattern Energy's special committee, while Paul, Weiss, Rifkind, Wharton & Garrison LLP acts as its independent legal counsel.

(USD 1.0 = EUR 0.897)

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Ivan is the mergers and acquisitions expert in Renewables Now with a passion for big deals and ambitious capacity plans.

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