US utility Allete goes private in $6.2 bln deal

By Jerry  Published On May 6, 2024
May 6 (Reuters) – Allete (ALE.N), opens new tab said on Monday U.S. investment management company Global Infrastructure Partners and Canadian pension fund CPP Investments were taking the clean energy company private in a $6.2 billion deal.
The cash offer of $67 per share for Allete represents a 19% premium to the company’s closing share price on Dec. 4, a day before an exclusive Reuters report on a potential sale.
The new deal values the utility’s equity at $3.86 billion, marginally above its $3.7 billion market valuation in December when Reuters reported that the company was exploring a sale, citing sources.
Shares of Allete were up 5.5% in premarket trading on the deal.
CEO Bethany Owen will continue in her role after the transactions close in mid-2025.
Allete has nearly 188,000 customers in northern Minnesota and northwestern Wisconsin and also operates wind, solar, coal-fired, biomass and hydroelectric power generation assets across the Upper Midwest.
It plans to invest around $4.3 billion in clean energy initiatives and transmission projects by 2027.
Source: REUTER

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