BLK - Allete Inc.: BlackRock's Backdoor Takeover
2024-06-30 05:27:17 ET
Summary
- On May 6, 2024, ALLETE, Inc. announced its plan to be acquired by Canada Pension Plan (40%) and Global Infrastructure Partners ("GIP") (60%).
- BlackRock, Inc., already a 13.5% shareholder in ALLETE, is in the process of acquiring GIP, with close expected in the third quarter of 2024.
- It would appear that BlackRock will in due course increase its share of ALLETE from 13.5% to 60% without ever making a formal bid for this utility.
- Shareholder approval of the sale only requires a simple majority, so there could be many shareholders forced to accept the offered price of $67 per share.
- Gaining regulatory approvals for the ALLETE sale is expected to take until mid-2025, and it remains to be seen how BlackRock's controlling interest will affect considerations.
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