Caisse de dépôt et placement du Québec (CDPQ) has acquired 13,153,799 Class A common shares of Boralex Inc. (TSX: BLX), being all of shares held by Cascades Inc. (TSX: CAS), representing 17.3% of the outstanding shares, for $287.5 million.
CDPQ will become only entity, directly or indirectly, controlling more than 10% of Boralex outstanding shares.
CDPQ will appoint two independent directors to Boralex’s Board of Directors and will have pre-emptive rights with respect to future issuances of shares, subject to customary exceptions.
Cascades was formerly a majority shareholder in Boralex, but has gradually had its ownership stake in the company diluted to 17.3% as Boralex has grown over recent years.
Boralex Inc. and CDPQ have agreed to explore partnership opportunities with respect to investing in future projects developed by Boralex that are in line with its growth strategy.
“We wish to thank Cascades for its support since Boralex was founded in 1995. Bernard Lemaire’s vision has allowed Boralex to become a leader in the Canadian renewable energy industry and France’s largest independent producer of onshore wind power. Boralex is pleased to welcome la Caisse as a new major shareholder in a transaction that will benefit the company as well as its shareholders,” said Alain Rhéaume, Chairman of the Board of Directors of Boralex.
“To have la Caisse come in as principal shareholder reflects the trust it puts in the business model and know-how of Boralex. We intend to work with la Caisse to develop growth opportunities through its financial capabilities, expertise and international network,” said Patrick Lemaire, President and Chief Executive Officer of Boralex.
“This stake in Boralex is an opportunity for us to invest in both a promising sector and high-quality assets, many of which are in Québec. In addition to sharing our long-term vision, Boralex’s ability to innovate and strong operating capacity ensure the reliability of its installations and contribute to its development. It has played an important role in the growth of this Québec-based company, both here and in global markets,” added Macky Tall, Executive Vice-President, Infrastructure, at la Caisse.
photo credit: Boralex