Institutional fund manager Caisse de depot et placement du Quebec has bought a 17.3% stake in Canadian renewable energy developer Boralex Inc (TSE:BLX) for CAD 287.5 million (USD 230m/EUR 197m).
Specifically, la Caisse has acquired all of the Class A common shares of Boralex held by Cascades Inc (TSE:CAS) and has agreed with the renewables firm to explore partnership opportunities with respect to investing in future projects developed by it.
“We intend to work with la Caisse to develop growth opportunities through its financial capabilities, expertise and international network,” said Patrick Lemaire, president and CEO of Boralex.
The now-completed transaction allows the institutional investor to appoint two independent directors to Boralex’s board of directors. In addition, it gets pre-emptive rights with respect to future issuances of shares.
Boralex said recently it expects to commission five wind parks totalling 76 MW, as well as the 16-MW Yellow Falls hydropower plant by end-2017. The company targets having 2,000 MW of installed capacity by the end of the decade.