10:20 AM EDT, 05/06/2024 (MT Newswires) -- Allete ( ALE ) agreed to be acquired and taken private by a partnership led by Canada Pension Plan Investment Board and Global Infrastructure Partners, in a deal worth roughly $6.2 billion, including debt.

Investors of Allete ( ALE ) will receive $67 per share in cash for each share owned in the energy company, the companies said in a joint statement Monday. The purchase price represents a 19% premium to Allete's ( ALE ) closing price on Dec. 4, the date before media reports began circulating about the company seeking a potential sale.

The deal, which requires approval from regulators, is expected to close in the middle of 2025. Allete ( ALE ) will no longer trade on the New York stock exchange once the transaction completes. The stock dipped 1% in Monday's trading session.

"Transitioning to a private company with these strong partners will not only limit our exposure to volatile financial markets, it also will ensure Allete ( ALE ) has access to the significant capital needed for our planned investments now and over the long term," Chief Executive Bethany Owen said in the statement.

As part of the agreement, Canada Pension Plan Investment Board and Global Infrastructure Partners have agreed to retain Allete's ( ALE ) workforce, with Owen set to carry on as CEO. The company's utilities Minnesota Power and Superior Water, Light and Power will continue to operate independently and be locally managed.

"Allete ( ALE ) is at the forefront of the clean energy transition and we are thrilled to support the delivery of the company's 'sustainability-in-action' strategy, which we believe will generate substantial value both for Allete's ( ALE ) customers and CPP contributors and beneficiaries," said James Bryce, managing director at Canada Pension Plan Investment.

"GIP, alongside CPP Investments, look forward to partnering to provide Allete ( ALE ) with additional capital so they can continue to decarbonize their business to benefit the customers and communities they serve," according to Global Infrastructure Partners CEO Bayo Ogunlesi.

In February, Allete ( ALE ) reported fourth-quarter earnings of $0.89 per share, down from $0.90 the year before. Total operating revenue slipped to $402.7 million from $425.8 million. At the time, the company said it expected full-year 2024 EPS to be in a range of $3.60 to $3.90.

Price: 63.88, Change: -0.39, Percent Change: -0.61