CDPQ completes Acquisition of Greater Changhua 1 Offshore Wind Farm 

DEAL OVERVIEW

Acquirer: CDPQ 

Target: 50% stake in Greater Changhua 1 Offshore Wind Farm (owned by Ørsted) 

Value: $2.68 billion 

Announced date: January 11th 2021 

Closed date: Ongoing 

Financial Advisors: Deutsche Bank for CDPQ 

Legal Counsel: Clifford Chance for CDPQ, Allen & Overy for Ørsted 

COMPANY DETAILS

Acquiring company: CDPQ

CDPQ is an institutional investor and asset manager that serves over 6 million Quebecers, and holds over 40 retirement and insurance plans. The company boasts net assets of $390 billion, and invests globally in financial markets, private equity, infrastructure, real estate and private debt 

CEO: Charles Emond 

Number of Employees: 1,391 

LTM Revenue: $6.5 billion 

As the company is an asset manager and not publicly traded, no further financial metrics exist or are applicable to the typical ones stated in previous articles 

The 605 MW Greater Changhua 1 Offshore Wind Farm is owned by Danish multinational power company Ørsted. CDPQ will be the majority owner among the two new partners. The Greater Changhua 1 site is part of the 900 MW Greater Changhua 1 & 2a Offshore Wind Farm, which is currently under construction, and is expected to be completed in 2022. All details listed below refer to Ørsted, as the previous owner of the asset. 

CEO: Mads Nipper 

Number of Employees: 6,429 

Market cap: N/A 

Enterprise Value: N/A 

LTM Revenue: 52.6 million DKK  

LTM EBITDA: 18.1 million DKK 

RATIONALE

The most clear reason for this deal is that of sustainability. With the incorporation of ESG into companies’ operation and culture becoming ever more important in today’s world, CDPQ will now be able to use this plant to deliver clean energy to over 650,000 Taiwanese homes. Executive Vice-President of CDPQ Emmanuel Jaclot, was quoted the following: “This investment in Taiwan [ ], allows us to further diversify our presence in Asia. As an investor with vast experience in renewable energy, we seek this kind of greenfield opportunity to contribute to the transition toward a low‑carbon economy.” This acquisition also promises to be a lucrative one, given the sudden rise in the renewables industry in the Asia-Pacific region. 

RISKS

Very few issues appear obvious from this transaction. With previous deals in this sector involving similar figures for similar capacity assets, the prospect of overpayment seems very low. One perhaps small uncertainty, however, is the fact that this deal is subject to regulatory approval from the Taiwanese authorities. 

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