A consortium led by Macquarie Group Ltd. (ASX:MQG) is close to completing a sale of Louisiana-based utility Cleco Power, with Stonepeak Partners LP and Bernhard Capital Partners identified as the prospective buyers, according to a Bloomberg News report that cited people familiar with the matter.
The reported transaction is valued in a narrow range - between $5.75 billion and $6.0 billion - and sources told the news service that an announcement could be made as soon as today. The deal price range and the potential timing are the only details specified by those sources in the report.
Cleco Power is currently held by a group of investors led by Macquarie. The report also names British Columbia Investment Management Corp. (BCI) and Manulife Investment Management as other owners of the utility.
Requests for comment drew limited responses. Representatives for Macquarie, BCI, Stonepeak and Bernhard declined to comment when contacted. Representatives for Cleco and Manulife did not immediately respond to requests for comment, according to the report.
The Bloomberg account, which attributes the information to people familiar with the matter, is the source of the details that the consortium is nearing a sale and that the transaction is priced in the $5.75 billion to $6.0 billion band. No additional terms, financing arrangements, closing timelines or regulatory details were provided in the report.
Where available, parties involved did not confirm the substance of the report publicly, and the potential for an announcement within a short window was described only by the unnamed sources cited by the news service.
Summary points
- Consortium led by Macquarie Group is reportedly close to selling Cleco Power to Stonepeak and Bernhard.
- Deal value is reported between $5.75 billion and $6.0 billion, with an announcement possibly imminent.
- Other identified Cleco owners include BCI and Manulife Investment Management; several parties declined to comment or did not respond.
Context and sectors affected
- Utilities - the target company operates in the electricity utility sector in Louisiana.
- Asset management and private equity - current owners and buyers are investment managers and private equity investors.
Risks and uncertainties
- The timing of a public announcement is uncertain - sources said it could be announced as soon as today, but no confirmation was provided by the parties involved.
- Deal terms beyond the reported price range were not disclosed; financing, regulatory approvals, or other closing conditions could affect completion.
- Several involved organizations declined to comment or did not respond, leaving aspects of the transaction unconfirmed by the named parties.