Feb 18 (Reuters) - Investment fund manager Water Island Capital LLC on Tuesday urged Pattern Energy Group Inc shareholders to reject a $2.63 billion buyout offer from the Canada Pension Plan Investment Board (CPPIB), calling it undervalued.
Funds managed by Water Island own over 4 million shares of Pattern Energy, and the firm said in light of a surge in renewable energy companies’ valuations Pattern Energy’s stand-alone price would exceed $30 per share.
Pattern Energy, which owns wind and solar projects in North America and Japan, in November agreed to be taken private by CPPIB at $26.75 per share.
Pattern Energy has scheduled a special meeting of its shareholders on March 10 to vote on the deal. (Reporting by Shanti S Nair in Bengaluru; Editing by Sriraj Kalluvila)