The private-equity firm KKR & Co. made a statement yesterday, revealing that it is to acquire a one-third stake in the renewable-energy business outside Spain of Acciona SA in a deal, which is estimated at 417 million euros (567 million dollars).
The co-founder of KKR & Co. – Mr. Henry Kravis said in the statement, which was cited by the Financial Times: “I am really optimistic about the opportunity to partner with such a prominent renewable energy company and to help further develop what is already one of the largest operating renewable portfolios in the world.”
KKR & Co. and Acciona SA made separate statements, revealing that the takeover estimates Acciona Energia International at 2.6 billion euros, including 1.3 billion euros of debt. KKR also unveiled that it intends to list the energy unit on the stock exchange in the near future.
The deal between the two companies is considered the biggest one associated with a sale of energy assets on the territory of Europe.
Such a move is considered a great step for the Spanish group, which has been facing some regulatory hurdles when trying to sell its wind-energy business. The renewable-energy assets located in Spain were excluded by Acciona, which is an infrastructure developer, from the takeover agreement with KKR.
Acciona, on the other hand revealed in February, that it was seeking a partner in order to sell a large stake of its foreign renewable assets. The company also disclosed that the proceeds that are to be gained from the deal are intended to be used in order to consolidate its balance sheet and invest in the growth and development of other parts of the company.
KKR & Co. LP was 0.67% down to close at 23.88 dollars per share yesterday, marking a one-year change of +27.70%. According to the information published on CNN Money, the 14 analysts offering 12-month price forecasts for KKR & Co. LP have a median target of 28.00, with a high estimate of 33.00 and a low estimate of 25.00. The median estimate represents a +17.25% increase from the last price of 23.88.
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