Cleco Corp. shareholders have approved the power company’s proposed $4.7 billion sale into private hands. As The Town-Talk reports, an agreement is in place for Pineville-based Cleco to be acquired by a North American investor group led by Macquarie Infrastructure and Real Assets and by British Columbia Investment Corporation.
The shareholder vote, tallied at a shareholder meeting Thursday, was one of the major hurdles needed to be cleared to finalize the deal. The proposal passed with more than 94% of votes cast in support, or about 77% of all shares outstanding.
Shareholders on Thursday also approved compensation packages Cleco executives contractually receive as part of a change in control. That vote, which is required by Security and Exchange Commission regulations, is non-binding.
The Louisiana Public Service Commission, as well as multiple federal agencies, still must OK the sale before it can be completed. If approved, the transaction is expected to close in the second half of the year.
Cleco announced the sale agreement in October. Under the transaction terms, stock owners would receive $55.37 per share—15% over the share price on the last day of trading before the sale announcement.
As part of the sale agreement, the investment group agreed to keep Cleco headquartered in Pineville and operating independently. It also agreed to maintain an aggregate number of employees, salaries and benefits for at least two years; maintain pension and retiree medical plans at current levels for at least two years; and keep current levels of charitable giving and economic development support.
