The Caisse announces an investment of close to $100 million in Québec-based Innergex Renewable Energy Inc.
MONTREAL, July 26, 2012 /CNW Telbec/ - The Caisse de dépôt et placement du Québec (the "Caisse") has acquired, through a private placement, ownership and control over 9,632,399 common shares of Québec-based company Innergex Renewable Energy Inc. ("Innergex"), or about 10.3% of Innergex's issued and outstanding common shares, at a price of $10.27 a share for a total cost of $98.9 million.
The subscription was made through private equity under the accredited investor exemption pertaining to the applicable securities regulations.
The investment in Innergex's common shares comes just after the company announced the acquisition of 70% of the Magpie hydroelectric generating station in Minganie RCM, Québec, and the acquisition of Wildmare, a wind energy project in British Columbia.
Earlier today, Innergex also announced the introduction of a dividend-reinvestment program. The Caisse has agreed to contribute at least 50% of its shares to the program for 12 months.
"Through this transaction, the Caisse is participating in the growth of a Québec leader that is extremely well positioned in renewable energy, a sector with a promising future," explained Normand Provost, Executive Vice-President, Private Equity. "As shown by its recent acquisitions, Innergex is expanding at a fast pace. Our goal is to support this company's growth while generating attractive returns for our depositors."
"We're pleased and honoured to count the Caisse de dépôt et placement du Québec among our shareholders. We consider their investment to be a recognition of our accomplishments and a vote of confidence in our long-term growth prospects, on behalf of a world-class Quebec institution", said Michel Letellier, President and Chief Executive Officer of Innergex.
"The quality of the management team and its ability to perform in a sector where cost control and deadlines are critical and often complex are beyond question," Mr. Provost added. "Innergex has an impressive track record of stable and predictable long-term returns, mainly because of the nature of its operations, which involve long-term contracts."
Having made its initial investments in Innergex in 1995, the Caisse enjoys a long-standing relationship with the company.
This transaction was carried out for investment purposes and the Caisse may increase or decrease its investment in Innergex, depending on market conditions or other relevant factors.
A copy of the early warning report will be filed with the applicable Canadian securities regulatory authorities and will be available on SEDAR's website (www.sedar.com) or by contacting the person mentioned below.
ABOUT INNERGEX RENEWABLE ENERGY INC.
Innergex Renewable Energy Inc. (TSX: INE) is a leading Canadian independent renewable power producer. Active since 1990, the Company develops, owns, and operates run-of-river hydroelectric facilities, wind farms, and solar photovoltaic farms and carries out its operations in Québec, Ontario, British Columbia, and Idaho, United States. Its portfolio of assets consists of: i) interests in 26 operating facilities with an aggregate net installed capacity of 494 MW (gross 880 MW), including 20 hydroelectric operating facilities, five wind farms, and one solar photovoltaic farm; ii) interests in nine projects under development or under construction with an aggregate net installed capacity of 231 MW (gross 374 MW), for which power purchase agreements have been secured; and iii) prospective projects with an aggregate net capacity totaling 2,904 MW (gross 3,127 MW). Innergex Renewable Energy Inc. is rated BBB- by S&P and BBB (low) by DBRS. The corporation's strategy for building shareholder value is to develop or acquire high-quality facilities generating sustainable cash flows and providing a high return on invested capital, and to distribute a stable dividend. For more information: www.innergex.com
ABOUT THE CAISSE DE DÉPÔT ET PLACEMENT DU QUÉBEC
The Caisse de dépôt et placement du Québec is a financial institution that manages funds primarily for public and private pension and insurance plans. As at December 31, 2011, it held $159.0 billion in net assets. As one of Canada's leading institutional fund managers, the Caisse invests in major financial markets, private equity and real estate. For more information: www.lacaisse.com
SOURCE CAISSE DE DEPOT ET PLACEMENT DU QUEBEC