Cleco shareholders approve sale

Cleco Corp. shareholders approved the company’s sale into private hands in a vote Thursday.

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.

One of the major approvals needed for the deal to be finalized was a shareholder vote. Votes were tallied at a shareholder meeting Thursday. The proposal passed with more than 94 percent of votes cast in support, which is equal to approximately 77 percent of all shares outstanding.

Shareholders also voted Thursday in favor of compensation packages that 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.

“We are pleased to have received such tremendous support from our shareholders and are equally as pleased to have structured a transaction that delivers this premium valuation opportunity to all of our public investors,” said Bruce Williamson, chairman, president and chief executive officer of Cleco Corp. “We will continue to work through the regulatory approval process as we seek to close the transaction that will benefit all of our stakeholders.”

The other major step needed for the sale to take place is approval from the Louisiana Public Service Commission. Approval from multiple federal agencies is also required.

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 percent over the share price on the last day of trading before the sale announcement.

Also as part of the sale agreement, the investment group agreed to keep Cleco headquartered in Pineville and operating independently. It also agreed to maintain 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.

The total value of the transaction is $4.7 billion — $3.4 billion for outstanding shares and $1.3 billion in assumed debt.