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Pattern Energy to be acquired by CPPIB in $2.63 bln deal

Power producer Pattern Energy Group Inc said on Monday it had agreed to be taken private by Canada Pension Plan Investment Board (CPPIB) for $2.63 billion.

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Nov 4 (Reuters) - Power producer Pattern Energy Group Inc PEGI.O said on Monday it had agreed to be taken private by Canada Pension Plan Investment Board (CPPIB) for $2.63 billion.

Shareholders of Pattern Energy - a renewable energy company, which owns wind and solar projects in North America and Japan, - will receive $26.75 per share, a discount of about 4% to the stock's Friday close.

Pattern Energy said CPPIB had also agreed to combine it with Pattern Development, a company backed by private-equity firm Riverstone Holdings LLC, to create an integrated renewable energy company.

Pattern Energy Chief Executive Officer Mike Garland will lead the combined entity, the company said in a statement.

The company said in August that it had drawn interest from potential third parties, prompting it to form a special committee to review various bids.

The deal, which is expected to close in the second quarter of 2020, is valued at about $6.1 billion, including debt.

Evercore and Goldman Sachs & Co. LLC were financial advisers to Pattern Energy's special committee, while Paul, Weiss, Rifkind, Wharton & Garrison LLP was its legal counsel.

(Reporting by Shanti S Nair in Bengaluru; Editing by Shinjini Ganguli and Anil D'Silva)

((ShantiS.Nair@thomsonreuters.com; +1 646 223 8780 Ext: 7208;))

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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