Canada Pension Is Said to Consider Shrinking Stake in Puget

The Canada Pension Plan Investment Board is considering selling part of its stake in the utility Puget Energy Inc., according to people familiar with the matter.

The investment group is working with an adviser to reduce its 31.6% stake by about 10 percentage points, said the people, who asked not to be identified because they weren’t authorized to speak publicly. The sale is expected to fetch $700 million, valuing Puget Energy at up to $7 billion, including debt, the people said.

A representative for Bellevue, Washington-based Puget Energy referred inquiries to CPPIB, which declined to comment.

CPPIB was part of a group that took Puget private in 2009, alongside Macquarie Group Ltd., British Columbia Investment Management Corp. and Alberta Investment Management Corp., according to a statement on its website. Macquarie sold its stake in the company to existing and new backers in 2019.

Puget Energy’s main operating unit, Puget Sound Energy, is the largest electric and gas utility based in Washington, with close to 2 million residential, commercial and industrial customers, according to its annual report. In January, the company announced plans to reduce its carbon emissions to net zero by 2045.

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