DULUTH — The sale of Minnesota Power’s parent company, ALLETE, to two private equity firms closed Monday, Dec. 15.
Global Infrastructure Partners will indirectly own 60% of the company, and the Canada Pension Plan Investment Board will indirectly own the other 40%.
“We are excited about this next chapter in ALLETE’s long history and the new partnership with CPP Investments and GIP. It strengthens our ability to advance our infrastructure investments to ensure a reliable grid and achieve state clean-energy goals, all while preserving ALLETE’s legacy of local leadership and community focus,” said ALLETE Chair, President and CEO Bethany Owen in a news release.
“We are grateful to the MPUC, the Minnesota Department of Commerce, and the many community partners who helped shape an agreement that delivers historic benefits to our customers and communities. Our focus remains on providing affordable, reliable, and increasingly sustainable energy for our region, as all of our ALLETE companies work together to lead the way to a sustainable clean-energy future.”
GIP is a private equity firm owned by BlackRock, the world’s largest asset management firm. CPP Investments independently oversees funds for Canada’s public retirement program and is one of the world’s largest private equity investors.
The Minnesota Public Utilities Commission approved the sale in October over the objection of environmental groups and Minnesota Power's largest industrial customers, like UPM Blandin and U.S. Steel.
As part of the sale agreement approved by the PUC, Minnesota Power will have a one-year rate freeze and must distribute $50 million in rate credits over the next seven years.
The company must also remain headquartered in Duluth. Over the next five years, the new owners will also have to meet investment requirements for a clean energy fund.
Trading of ALLETE stock was suspended when the New York Stock Exchange opened Monday. Shareholders will soon receive $67 per share in cash.
