CPPIB to buy US wind and solar operator Pattern Energy

Pattern Energy Group said on Monday that it has agreed to be taken private by the Canada Pension Plan Investment Board (CPPIB) in a deal valued at $6.1bn.

Under the terms of the deal, CPPIB will pay $26.75 per share in cash for the US wind and solar operator. This is premium of about 14.8% to the closing share price on August 9, which was the last trading day before market rumours about a deal began to circulate.

Pattern Energy chief executive Mike Garland said: "Over the years, Pattern Energy has been able to provide shareholders with a consistent dividend and now our shareholders can realise the value embedded in the company.

"We believe the proposed transaction reflects the strength of the platform we have built."

Upon completion of the transaction, expected by the second quarter of next year, Pattern Energy will become a privately-held company.

The Pattern Energy management team, led by Mike Garland, will lead the combined company.

At 1535 GMT, Pattern shares were down 2.9% at $26.99.