Two of Canada's biggest pension funds are exploring a possible divestment from Cubico Sustainable Investments that could value the renewable energy firm at about $6bn or more, including debt, Reuters reported.

Montreal-based Public Sector Pension (PSP) Investment Board and the Ontario Teachers' Pension Plan (OTPP) are looking to appoint a financial advisor in the coming weeks and are aiming for a valuation of about 10 times its earnings before interest, taxes, depreciation, and amortisation (Ebitda) of $641m in 2022, Reuters reported, quoting unnamed sources.

Ontario Teachers' currently manages net assets worth C$247.2bn ($184.3bn), while PSP oversees roughly C$243.7bn of assets.

The potential sale of Cubico comes at a time when renewable power developers and other service providers focused on energy transition have become attractive acquisition targets for infrastructure investors and corporate utilities, Reuters noted.

Cubico operates wind and solar farms in 12 countries in Europe and America, as well as concentrated solar power and transmission line technology operations with a capacity of 2.8GW.

The company is also developing and constructing over 2.2 GW of additional capacity, according to its website.

In 2015 the two funds partnered with Banco Santander to launch Cubico, and bought out the Spanish bank's stake the following year.

In 2021, Recharge reported that the two pension funds had negotiated a deal with their partner in the US, renewables firm NextEra Energy Resources, to acquire the latter's 50% non-controlling interest in Cubico.