Innergex's Pivotal Moment: CDPQ Acquisition and the Path to Private Ownership

In the ever-evolving landscape of renewable energy, Innergex Renewable Energy Inc. (TSX: INE) has announced a significant milestone in its journey. The company has filed its management information circular and related materials in connection with its upcoming annual and special meeting of shareholders, scheduled for May 1, 2025. This meeting is pivotal as it will address the previously announced arrangement to be taken private by CDPQ, a move that promises to reshape the future of Innergex and the renewable energy sector in North America.

The acquisition of Innergex by CDPQ is a strategic move that aligns perfectly with CDPQ's mandate to support essential businesses in Québec. Emmanuel Jaclot, Executive Vice-President and Head of Infrastructure at CDPQ, emphasized the long-term vision and access to capital that CDPQ brings to the table. "We are proud to support Innergex as it embarks on this new chapter, guided by a long-term vision, access to capital, and readiness to seize growth opportunities. This investment perfectly illustrates our constructive capital and dual mandate in action: while we strive for optimal returns, we are committed to supporting essential businesses headquartered in Québec, such as Innergex, which plays a key role in the energy transition and autonomy."

The transaction, valued at a total enterprise value of $10.0 billion, includes the acquisition of all issued and outstanding common shares of Innergex for $13.75 per share in cash. This represents a premium of 58% over Innergex’s current share price of $8.71, and an 80% premium over the 30-day volume weighted average price of $7.66 on the TSX as of February 24, 2025. This offer provides immediate liquidity and certainty of value to Innergex shareholders, positioning the company for long-term success under the private ownership of CDPQ.

For Innergex shareholders, the transition from a publicly traded company to a privately held entity presents both benefits and drawbacks. On the positive side, the $13.75 per share offer is a significant premium, providing a substantial return for shareholders. Additionally, CDPQ's strong balance sheet and long-term vision can support Innergex's growth trajectory, leading to accelerated development opportunities. However, shareholders will lose public market liquidity, and there may be less transparency and accountability under private ownership.

The implications of this acquisition for the renewable energy sector in North America are profound. With the financial and strategic backing of CDPQ, Innergex is positioned to accelerate its growth trajectory for years to come. This move not only supports the development of renewable energy but also reinforces Québec's role in the energy transition and autonomy. As Michel Letellier, President and Chief Executive Officer of Innergex, stated, "As we transition from being a publicly traded company to a privately held entity, this change marks an exciting new chapter in our journey. CDPQ shares our commitment to sustainability, growth as well as long-term value, hence together, we will be able to achieve even greater success."

In conclusion, the acquisition of Innergex by CDPQ is a strategic move that aligns with CDPQ's mandate to support essential businesses in Québec. The transaction provides immediate liquidity and certainty of value to Innergex shareholders, positioning the company for long-term success under private ownership. The implications for the renewable energy sector in North America are significant, as Innergex is poised to accelerate its growth trajectory with the financial and strategic backing of CDPQ. This move not only supports the development of renewable energy but also reinforces Québec's role in the energy transition and autonomy.