CC&L Infrastructure to buy 80 percent stake in Alberta-based wind farm for $600 million

CC&L Infrastructure has agreed to acquire an 80 percent stake in an Alberta-based wind farm project for $600 million. Also in this week’s deals roundup is the $200 million private placement of Montreal gene therapy developer enGene Holdings.

CC&L Infrastructure to buy EDP’s 80 percent share in Alberta-based wind farm for $600 million

Connor, Clark & Lunn Infrastructure (CC&L Infrastructure), a Canadian investment fund, is acquiring 80 percent shares in the Alberta-based Sharp Hills wind farm from EDP Renovaveis (EDPR), a Portuguese renewable energy developer and producer, in a deal valued at $600 million.

The 297-megawatt (MW) wind farm recently entered into operation, and its remaining construction is expected to be completed by the second quarter of the year.

EDPR will retain a minority equity interest and will continue to operate and manage the wind farm.

The Sharp Hills wind farm project is CC&L Infrastructure’s second transaction with EDPR, having previously acquired a portfolio of US wind and solar assets with a combined capacity of 560 MW.

“The Sharp Hills wind farm is an attractive addition to our increasingly diverse portfolio of infrastructure assets,” said CC&L Infrastructure President Matt O’Brien. “We are excited to continue expanding our asset base and are actively pursuing further investment opportunities created by increasing demand for renewable power and the broader energy transition that is underway.”

“The Sharp Hills project underscores our continuing commitment to invest in Alberta and contribute to its grid resiliency and energy security,” said EDPR North America CEO Sandhya Ganapathy. “With the latest investment, CC&L Infrastructure will own more than 600 MW of wind generation assets and the firm’s total portfolio of renewable energy projects will exceed 1.8GW of clean energy capacity across Canada, the US, and Chile.”

Montreal biotech firm enGene raises $200 million in private placement

enGene Holdings Inc., a Montreal gene therapy developer, raised $200 million in an oversubscribed private placement priced 31 percent above its previous closing price.

Leerink Partners, Guggenheim Securities, and Wells Fargo Securities are acting as placement agents on the offering.

Participating investors include new and prior backers, such as Adage Capital Partners, Blue Owl Healthcare Opportunities, Boxer Capital, Citadel-owned Surveyor Capital, Janus Henderson Investors and early backer Lumira Ventures of Toronto.

The proceeds from this financing are expected to fund enGene through trials and its first commercial launch.

CDPQ invests $125 million in Quebec IT services consolidator Levio

The Caisse de depot et placement du Quebec (CDPQ) is investing $125 million in equity for a minority interest in Levio Consulting Inc., a Quebec-based information technology services consolidator.

Desjardins Capital Markets acted as the exclusive financial advisor to Levio.

To date, Levio has 11 acquisitions in Canada under its belt and has nearly 2000 consultants working in 12 offices in Canada, the United States, Morocco, India, and France.

“CDPQ is proud to partner with Levio to support its expansion plan, which will grow its North American presence and consolidate its position in the market,” said CDPQ Executive Vice-President and Head of Québec Kim Thomassin. “Digital transformation is central to the sustainability and productivity of organizations, and this partnership is perfectly in line with our investment priorities and supports the company’s growth.”

“With the arrival of CDPQ as a partner, we are looking to increase our rate of expansion to achieve our company acquisition strategy by associating with successful entrepreneurs, primarily in Canada and the U.S.,” said Levio President and Founder François Dion. “This agreement provides us with significant financial leverage to continue building partnerships with our clients to execute large-scale digital transformations.”

CPP Investments to become shareholder in $2.1 billion merger of Aera Energy and California Resources Corporation

Canada Pension Plan Investment Board (CPP Investments) is expected to receive shares of common stock upon the closing of Aera Energy’s $2.1 billion merger with California Resources Corporation (CRC), an independent energy and carbon management company committed to energy transition.

“This transaction provides CPP Investments with an excellent opportunity to scale up our investment in California's energy transition, with Aera Energy and CRC both aligned in their commitment to enabling new carbon management solutions and each bringing complementary strengths to the table,” said CPP Investments Global Head of Sustainable Energies Managing Director Bill Rogers. “The combined company is set to play a leading role in California's energy transition, which we view as a promising source of long-term risk-adjusted returns for the CPP Fund.”

IKAV, which owns a 51 percent stake in Aera Energy, will also become a shareholder of the combined company. CPP Investments has held 49 percent shares in Aera Energy since February 2023.

Upon closing, IKAV and CPP Investments will collectively hold 22.9 percent of CRC’s common stock and will have the right to nominate one representative each to the CRC Board.

The deal is anticipated to be completed in the second half of 2024, subject to customary closing conditions.

DeFi Technologies acquires Reflexivity Research

DeFi Technologies Inc., a Toronto-based crypto native technology company, has acquired Reflexivity Research LLC, a private research firm that specializes in producing research reports for the cryptocurrency sector.

“This acquisition marks the beginning of a new chapter for us as we establish our presence in the research sector,” said DeFi Technologies CEO Olivier Roussy Newton. “Joining forces with Reflexivity Research is a strategic step that will greatly enhance our offerings and provide our clients with access to premier insights in the cryptocurrency market.”

“As traditional finance continues to allocate to this new asset class and structured products become more important in 2024, we are excited to partner with DeFi and the pioneers of the ETP market at Valour,” said Reflexivity Research Co-Founder Anthony Pompliano. “This collaboration will enhance our research and bring insightful, actionable intelligence to our clients, bridging the gap between traditional finance and the burgeoning potential of cryptocurrency markets.”

In connection with the acquisition, DeFi Technologies acquired all issued and outstanding securities of Reflexivity Research for 5 million common shares of DeFi Technologies.