KKR $567m for Acciona RE stake
US investment giant KKR is taking a one-third stake in the international renewable power generation arm of Spain’s Acciona in a deal worth €417m ($567m), with a view to floating a "yieldco" spin-off.
Acciona – which has been searching for an international investor since early this year – said the deal will help fund future growth of its global renewables portfolio.
The Spanish group will continue to own the other two-thirds of Acciona Energia International (AEI), which operates 2.3GW around the world – mostly wind power.
KKR is making the investment via its Global Infrastructure Fund. The stake price gives AEI as a whole an enterprise value of €2.6bn, making the transaction one of the biggest yet in the renewables sector, according to Acciona.
Parent group Acciona Energia will operate AEI’s assets under a 20-year management agreement. It will give AEI first refusal on projects it develops in territories covered by the international subsidiary.
Acciona said the two partners plan to stage an international IPO of a "yieldco" that will hold some or all the assets of AEI.
Acciona signalled earlier this year that it would seek an international investor to help it fulfil its growth ambitions outside Spain, where its operations have been hammered by regulatory changes.
José Manuel Entrecanales Domecq, CEO of Acciona, said: “We are very pleased to have KKR on board as a long-term investment partner who understands and shares our ambition to grow in the renewable energy sector. Our strategic alliance will broaden our international reach, and it will transform the scale of what we can achieve.”
The transaction is expected to close by the end of the year.