CPPIB to Acquire Pattern Energy in All-Cash Deal

Moreover, the Pattern Energy stake transaction is expected to be completed by the second quarter of 2020, subject to required regulatory approvals, and other customary closing conditions.

Canada Pension Plan Investment Board (CPPIB), a professional investment management organization, has entered into a definitive agreement to buy Pattern Energy in an all-cash transaction for USD 26.75 per share, implying an enterprise value of approx. USD 6.1 billion, including net debt.

Post-acquisition, both CPPIB and Riverstone Holdings will combine Pattern Energy and Pattern Development into an integrated renewable energy company. However, the Pattern Energy management team, led by Mike Garland, will lead the combined enterprise.

As per the acquisition deal, Pattern Energy shareholders will receive USD 26.75 per share in cash consideration, representing a premium of approx. 14.8 percent to it’s closing share price on August 9, 2019, the last trading day prior to market rumors regarding its potential acquisition.

Besides, the consideration also represents a 15.1 percent premium to the 30-day volume weighted average price prior to that date.

Moreover, the transaction is expected to be completed by the second quarter of 2020, subject to required regulatory approvals, and other customary closing conditions.

Commenting on the deal, Pattern Energy, CEO, Mike Garland said “this agreement with CPPIB and Riverstone provides certain and significant value for Pattern Energy shareholders with an all cash transaction at a very attractive stock price.”

Garland further added that, “over the years, Pattern Energy has been able to provide shareholders with a consistent dividend and now our shareholders can realize the value embedded in the company. We believe the proposed transaction reflects the strength of the platform we have built.”

“In reaching this transaction, the Pattern Energy Board of Directors undertook a robust process that we believe culminated in a transaction that delivers value to shareholders,” said Alan Batkin, Chairman of the Pattern Energy Board of Directors.

“Pattern Energy is one of the most experienced renewables developers in North America and Japan with a high-quality, diversified portfolio of contracted operating assets, aligning well with CPPIB’s renewable energy investment strategy and the increasing global demand for low-carbon energy,” said Bruce Hogg, managing director, head of power and renewables, CPPIB.