La Caisse Finalizes Innergex Acquisition, Exits Public Markets

• La Caisse acquires Innergex, boosting its climate-transition portfolio and accelerating growth in renewable energy markets.

La Caisse, Quebec's CDN$434-billion pension fund, has completed its acquisition of Innergex Renewable Energy Inc., removing the 32-year-old company from public markets. The fund paid CAD 13.75 per common share and CAD 25.00 for Series A and C preferred shares, valuing the equity at approximately CAD 1.8 billion. All 4.65% unsecured convertible debentures were repaid at closing. A portion of La Caisse’s stake has been syndicated to co-investors, while Innergex’s CEO Michel Letellier and CFO Jean Trudel retained part of their holdings, ensuring management continuity.

Innergex will cease trading on the Toronto Stock Exchange by July 2025 and terminate its reporting obligations. Going private is expected to accelerate growth in hydro, wind, solar, and storage markets. La Caisse, which first invested in Innergex in 2015, views the company as a key asset in its CAD 60 billion climate-transition portfolio. Analysts anticipate further capital injections to expand Innergex’s 4.7-GW operating base and 10-GW development pipeline.

How will La Caisse's acquisition impact Innergex's growth in renewable energy markets?

• Enhanced Financial Backing: La Caisse's acquisition provides Innergex with substantial financial resources, enabling the company to pursue larger and more ambitious renewable energy projects.
• Strategic Alignment: As part of La Caisse's climate-transition portfolio, Innergex will benefit from strategic alignment with broader sustainability goals, potentially opening up new opportunities in emerging markets.
• Increased Investment Capacity: With the backing of a major pension fund, Innergex is likely to receive further capital injections, facilitating the expansion of its 4.7-GW operating base and 10-GW development pipeline.
• Focused Growth Strategy: Going private allows Innergex to focus on long-term growth strategies without the pressure of quarterly earnings reports, enabling more strategic investments in hydro, wind, solar, and storage markets.
• Management Continuity: Retention of key management figures ensures stability and continuity in leadership, which is crucial for executing growth plans effectively.
• Enhanced Market Position: The acquisition positions Innergex to strengthen its market presence and competitiveness in the renewable energy sector, potentially leading to increased market share.
• Synergies with Co-Investors: Syndication of La Caisse’s stake to co-investors may bring additional expertise and resources, further supporting Innergex's growth initiatives.
• Accelerated Project Development: With increased financial and strategic support, Innergex can accelerate the development and deployment of renewable energy projects, contributing to faster growth in its target markets.