Innergex closes sale of 19.9% stake to Hydro-Quebec

Innergex Renewable Energy Inc has completed the sale of a 19.9% stake in the Canadian electricity producer Hydro-Quebec for a total consideration of CAD661 million (USD$498 million) investment. 

The Strategic Alliance between Innergex and Hydro-Québec will target specific strategic investments for mutual benefit of both companies. Targeted areas for investment include wind and solar projects with battery storage or transmission, distributed generation, off-grid renewable energy networks, and other sectors as may be agreed by both parties. Hydro-Québec has committed an initial US$500 million to the Strategic Alliance which will be entirely and exclusively dedicated to co-investment projects with Innergex.

Hydro-Québec has made a US$661 million investment in Innergex through a private placement of Innergex common shares at a price of $19.08 per share, representing a premium of 5.0% to the 30-day volume-weighted average price as at February 5, 2020. With this Private Placement, Hydro-Québec is now a key strategic investor in the Corporation holding 19.9% of the issued and outstanding common shares on a non-diluted basis.

Pursuant to the Private Placement, Innergex has issued 34.6 million common shares to Hydro-Québec, at a price of US$19.08 per share, representing a premium of 5.0% to the 30-day volume-weighted average price of common shares of the Corporation on the Toronto Stock Exchange as at February 5, 2020. The Private Placement has been conditionally approved by the TSX, subject to customary conditions.

National Bank Financial is acting as financial advisor and McCarthy Tétrault is acting as legal counsel to Innergex. RBC Capital Markets is acting as financial advisor and Norton Rose Fulbright is acting as legal counsel to Hydro-Québec.