Clean-energy producer Allete agrees to go private for $6.2 billion

By Steve Gelsi

Canada Pension Plan Investment Board and Global Infrastructure Partners team up to pay $67 a share

Power producer Allete Inc. said Monday it agreed to go private for $67 a share in a deal valued at about $6.2 billion including debt with buyers Canada Pension Plan Investment Board and Global Infrastructure Partners.

The price for Duluth, Minn.-based Allete (ALE) of $67 a share is a 4% premium to the stock's closing price of $64.27 on Friday and a 19.1% premium to its closing share price on Dec. 4, the date before a report the company was considering a sale.

Allete's stock dipped 0.4% to $64 on Monday morning.

Allete runs regulated utilities Minnesota Power and Superior Water, Light and Power (SWL&P) as well as an alternative power unit.

The power company said the deal with Canada Pension Plan Investment Board and Global Infrastructure Partners. will allow it to "execute a clean-energy future" as a private company.

"All Allete companies will remain committed to advancing a clean-energy future, through solar, wind, storage and transmission infrastructure and achieving carbon-free goals of the respective states in which the companies operate," the company said.

Prior to Monday's trades, Allete's stock has risen 5.1% in 2024, compared to a 7.6% increase by the Nasdaq COMP.

-Steve Gelsi

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05-06-24 0943ET

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