Green spending strain boosts infrastructure buyers

ALLETE

06/05/2024 19:14

(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.
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    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)
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