The Canada Pension Plan Investment Board is acquiring renewable energy company Pattern Energy Group Inc. in an all-cash deal.
The purchase of the San Francisco-based company is valued at $26.75 per share, which implies the company has a value of $6.1 billion, including all debt. The offer represents a 14.8 per cent premium to Pattern Energy’s closing share price on Aug. 9, 2019.
Provided the deal goes through, the CPPIB has entered an agreement with Riverstone Holdings, which invested in the company 10 years ago. Under the agreement, Riverstone will combine Pattern Energy and Pattern Energy Group Holdings 2 LP, also known as Pattern Development, under a common ownership.
“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 and head of power and renewables at the CPPIB, in a press release.
“The Pattern Energy management team has a proven track record of identifying and executing development strategies with differentiated competitive advantages. We look forward to working with Pattern Energy and Riverstone to grow the company.”