(The author is a Reuters Breakingviews columnist. The opinions expressed are his own.)
By Robert Cyran
NEW YORK, May 6 (Reuters Breakingviews) - GIP, soon to be part of BlackRock, is buying Allete, an energy firm that is set to spend over $4 bln on clean power. Listed utilities’ funding costs are rising while green upgrades demand big outlays, a tasty opportunity for infrastructure funds with $350 bln of capital.
Full view will be published shortly.
Follow @rob_cyran on X
CONTEXT NEWS
Regulated utility Allete said on May 6 that it had agreed to be acquired by a partnership led by Canada Pension Plan Investment Board and Global Infrastructure Partners for $67 per share, or $6.2 billion including assumed debt. The price is a 19% premium to where Allete’s shares closed on Dec. 4, the day before Reuters said the company was in sale discussions.
Allete serves customers in Minnesota and Wisconsin. It is also a renewable energy developer and plans to invest over $4 billion in clean energy and transmission projects by 2027.
(Editing by Jonathan Guilford and Sharon Lam)
((For previous columns by the author, Reuters customers can click on robert.cyran@thomsonreuters.com; Reuters Messaging: robert.cyran.thomsonreuters.com@reuters.net))
Comments