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Cleco Corporation Receives Favorable Recommendations from Proxy Voting Firm ISS

Strategic Insights

— 1 min read

Cleco Corporation's proposed acquisition by a North American investor group led by Macquarie Infrastructure and Real Assets has received a boost with Institutional Shareholder Services (ISS) recommending that shareholders vote "FOR" the transaction. ISS's recommendation is based on the premium being offered to shareholders, the company's rationale for the transaction, the positive market reaction, and the thorough review process conducted by the company. Cleco Corporation's Board of Directors has also unanimously recommended that shareholders vote "FOR" the transaction with the investor group.

Key Takeaways:

  • ISS recommends that shareholders vote "FOR" the proposed acquisition by the North American investor group led by Macquarie Infrastructure and Real Assets, citing the premium being offered to shareholders as one of the reasons.
  • The company's Board of Directors has also unanimously recommended that shareholders vote "FOR" the transaction with the investor group.
  • Cleco Corporation's common stock has nearly tripled in price from mid-2009 through 2014, and the company's Board of Directors believes that the current share price includes a built-in premium.
  • The proposed acquisition requires the affirmative vote of a majority of the votes entitled to be cast on the transaction.
  • Cleco Corporation is a public utility holding company headquartered in Pineville, La., with a regulated electric utility company, Cleco Power LLC, which is engaged principally in the generation, transmission, distribution, and sale of electricity in Louisiana.

Statistics:

  • Cleco Corporation's common stock has nearly tripled in price from mid-2009 through 2014, with a current price of $55.37 per share.
  • Cleco Power LLC has a total nameplate capacity of 3,340 megawatts and serves approximately 284,000 customers in Louisiana through its retail business.
  • The proposed acquisition requires the affirmative vote of a majority of the votes entitled to be cast on the transaction.

Sources:

  • Thomson Reuters ONE via COMTEX
  • Institutional Shareholder Services (ISS)
  • Cleco Corporation's Annual Report on Form 10-K for the fiscal year ended December 31, 2013, filed with the SEC on February 25, 2014, under the headings Part I, Item 1A, "Risk Factors" and Part II, Item 7, "Management's Discussion and Analysis of Financial Condition and Results of Operations"

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