.jpg)
1 hour ago
3
Article content
Brookfield Asset Management Ltd. has teamed up with the Caisse de Dépôt et placement du Québec to acquire Boralex Inc., a Quebec-based renewable energy company with operations in Canada, France, the United States and United Kingdom.
THIS CONTENT IS RESERVED FOR SUBSCRIBERS ONLY
Subscribe now to read the latest news in your city and across Canada.
- Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman, and others.
- Daily content from Financial Times, the world's leading global business publication.
- Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.
- National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.
- Daily puzzles, including the New York Times Crossword.
SUBSCRIBE TO UNLOCK MORE ARTICLES
Subscribe now to read the latest news in your city and across Canada.
- Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman and others.
- Daily content from Financial Times, the world's leading global business publication.
- Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.
- National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.
- Daily puzzles, including the New York Times Crossword.
REGISTER / SIGN IN TO UNLOCK MORE ARTICLES
Create an account or sign in to continue with your reading experience.
- Access articles from across Canada with one account.
- Share your thoughts and join the conversation in the comments.
- Enjoy additional articles per month.
- Get email updates from your favourite authors.
THIS ARTICLE IS FREE TO READ REGISTER TO UNLOCK.
Create an account or sign in to continue with your reading experience.
- Access articles from across Canada with one account
- Share your thoughts and join the conversation in the comments
- Enjoy additional articles per month
- Get email updates from your favourite authors
Sign In or Create an Account
or
Article content
The $37.25-a-share purchase price is a nearly 32 per cent premium over the March 20 trading price and implies a a total enterprise value of $9 billion.
Article content
Article content
Article content
The Caisse, which already held a 15 per cent interest in Boralex will boost its stake to 30 per cent as part of the transaction, which came about following a strategic review overseen by a special committee of Boralex directors.
Article content
By signing up you consent to receive the above newsletter from Postmedia Network Inc.
Article content
“This transaction brings in the right long-term partners for Boralex as we enter an accelerated growth phase requiring significant capital deployment and financial flexibility,” said Patrick Decostre, the company’s chief executive.
Article content
“On top of its financial capacity, Brookfield alongside La Caisse, brings complementary expertise to Boralex’s skill set and will enable us to benefit from significant economies of scale and opportunities, particularly in procurement, energy commercialization to large corporations and sharing of best practices within their different platforms.”
Article content
Boralex has about 3,800 megawatts of wind, solar, hydro and battery energy storage assets, with more than 90 per cent of them contracted for an average term of 10 years. Over the past five years, installed capacity has increased by more than 50 per cent.
Article content
The company also has a portfolio of projects under construction or ready to build totalling about 300 megawatts alongside about 750 megawatts of secured projects.
Article content
Article content
With backing from Brookfield and the Caisse, Boralex will be able to accelerate the development of its project pipeline including around 1,600 megawatts of advanced-stage development projects, and an additional approximately 5,600 megawatts of mid- and early-stage pipeline located in strategic markets, the company said.
Article content
Jehangir Vevaina, Brookfield’s global chief investment officer for energy, said the global investor’s customer and supply chain partnerships, long-term capital, and deep operational experience in renewables will help build on a strong foundation at Boralex. Expansion will include Canada and “other attractive energy markets,” Vevaina said in a statement.
Article content
“We look forward to working with Boralex’s leadership team and building on Boralex’s strong relationships with its local communities, partners and stakeholders in support of its continued growth.”
Article content
Brookfield said the fundamentals for clean energy continue to be very strong, which is why the global investor was keen to add more development capabilities in major strategic markets around the world. The transaction adds a about four gigawatts of operating projects to Brookfield’s existing global renewable portfolio of 46 gigawatts, with a further roughly eight gigawatts in various stages of the pipeline across Canada, France, the U.S. and U.K.
English (US)