Allete to be acquired for $67.00 per share in cash

Allete and a partnership led by Canada Pension Plan Investment Board, or CPP Investments, and Global Infrastructure Partners, jointly announced that they have entered into a definitive agreement under which the partnership will acquire Allete for $67.00 per share in cash, or $6.2B including the assumption of debt. In connection with the merger, CPP Investments and GIP will acquire all of the outstanding common shares of Allete for $67.00 per share in cash representing an enterprise value of approximately $6.2B, including Allete’s net debt. This represents a premium of approximately 19.1% to Allete’s closing share price on December 4, 2023, the date prior to a media article reporting that Allete was exploring a sale. The consideration also represents a 22.1% premium to the 30-day volume weighted average share price prior to that date. The acquisition was unanimously approved by Allete’s board of directors and is expected to close in mid-2025, subject to the approval of Allete’s shareholders, the receipt of regulatory approvals, including by the MPUC, PSCW and FERC, and other customary closing conditions. Dividends payable to Allete shareholders are expected to continue in the ordinary course until the closing, subject to approval by Allete’s board of directors. Upon completion of the acquisition, Allete’s shares will no longer trade on the New York Stock Exchange, and Allete will become a private company.