Breaking News
0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

KKR Saves Spanish Wind Project By Taking Stake In The Company

Stock MarketsJun 24, 2014 11:30AM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 

By Maria Gallucci - Austerity makes for strange bedfellows and private equity groups are always looking for bargains. Those truisms intersected on Tuesday as KKR & Co LP (NYSE:KKR)., the private equity group run by Investor Henry Kravis, said it paid more than half a billion dollars for one-third of a Spanish wind farm company forced into hard times by Spanish government austerity.

“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,” Henry R. Kravis, the private equity firm’s co-founder, said.

In one of the largest renewable energy transactions to date Spanish construction giant Acciona (MADRID:ANA) agreed to sell one-third of its international wind and solar-energy assets for 417 million euros, or about $567 million, to Kohlberg Kravis Roberts & Co. The deal gives Acciona Energia International, the global renewable generation arm of Acciona Energia, an enterprise value of roughly 2.6 billion euros, about half of which is debt.

The company had been trying to sell part of its renewables assets for more than a year but until now had run into regulatory hurdles. During that time the firm struggled to stem losses triggered when Spain sharply cut alternative energy subsidies during its recent debt crisis.

Acciona reported a record $2.7 billion loss last year and booked hefty charges in its 2013 accounts, the Wall Street Journal reported. 

Acciona Energia’s renewables assets outside of Spain include 2.3 gigawatts of installed generation capacity, mainly from wind-energy farms spread across 14 countries, including the United States, Mexico and Australia, according to the company.

The strategic alliance with KKR & Co. “will broaden our international reach, and it will transform the scale of what we can achieve,” Jose Manuel Entrecanales, Acciona’s chairman and chief executive said in a statement.

The Acciona transaction follows another major renewable energy investment for KKR & Co., which recently landed a $400 million deal with Google Inc (NASDAQ:GOOGL) involving solar power plants in California and Arizona. In that deal Google and KKR will invest nearly $80 million in Recurrent Energy to build six solar energy facilities in California and Arizona that aim to generate enough power for 17,000 homes.

KKR’s other renewable investments also include a partnership with Sorgenia, one of the largest wind farm operators in France by installed capacity and a partnership with T-Solar, the largest owner/operator of solar photovoltaic generation assets in Europe, according to the company.

 

KKR Saves Spanish Wind Project By Taking Stake In The Company
 

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind: 

  • Enrich the conversation
  • Stay focused and on track. Only post material that’s relevant to the topic being discussed.
  • Be respectful. Even negative opinions can be framed positively and diplomatically.
  •  Use standard writing style. Include punctuation and upper and lower cases.
  • NOTE: Spam and/or promotional messages and links within a comment will be removed
  • Avoid profanity, slander or personal attacks directed at an author or another user.
  • Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
or
Sign up with Email