The final step in the potential sale of Cleco Corp. from public to private ownership will be the most exhaustive.
As The Town Talk of Alexandria reports, Pineville-based Cleco agreed in October to a sale proposal for nearly $5 billion in cash and assumed debt. The Louisiana Public Service Commission is expected to decide in November whether to approve the sale.
Commissioner Clyde Holloway, who represents much of Central Louisiana, says he is “strongly leaning against the sale,” adding he’s keeping an open mind ahead of the November hearings.
“There’s no reason for the commissioners to be for a deal that’s in motion,” says Darren Olagues, president of Cleco Power. “It’s our job to convince them this is a good deal.”
The proposed sale is to an investment group led by Macquarie Infrastructure and Real Assets and British Columbia Investment Management Corporation, together with John Hancock Financial. The deal is for approximately $4.9 billion—$2.17 billion in equity from the investors, $1.35 billion in assumed debt and $1.35 billion in new debt used to finance the sale.
Thus far, the process has moved forward without a snag.
In February, 94% of Cleco shareholders, representing 77% of outstanding shares, voted to approve the sale. If the deal is approved, shareholders will receive $55.37 per share—15% over the share price on the last day of trading before the sale announcement.
The sale has also been cleared by the Federal Energy Regulatory Commission and the Committee on Foreign Investment in the U.S.
That leaves approval from the PSC as the last major step before the deal can be closed.
Direct testimony before the commission regarding the potential sale ended July 29. Hearings to consider a final decision are scheduled to start Nov. 9 and continue Nov. 10, 12 and 13, if necessary.
