KKR infrastructure funds have sold their 33.33% stake in Acciona Energía Internacional (AEI) to Acciona and AXA Investment Managers - Real Assets.
In an announcement late last week, Acciona said it will increase its equity stake in AEI from 66.67% to 80.0% and AXA IM - Real Assets will acquire the remaining 20.0% stake.
Acciona said it intends to sell 5% of its stake prior to the closing of the deal which is expected to take place by December.
Financial details were undisclosed.
Acciona said the 75% stake in AEI will enable the subsidiary to become part of its Spanish tax consolidation group.
AEI was created in 2014 to house the majority of Acciona’s renewable energy generation assets outside Spain at the time. KKR acquired its 33.33% equity stake in AEI for €397m with Acciona retaining the remaining 66.67% equity stake and continuing to manage the portfolio.
AEI currently owns 52 renewable energy assets, mostly onshore wind farms, with a combined net generation capacity of 2.3GW. This portfolio is spread around the globe with the assets located mainly in OECD countries including the US, Mexico, Canada, Italy, Portugal, South Africa and Australia.
Isabelle Scemama, CEO of AXA IM - Real Assets, said: “We set demanding criteria for our first major renewable energy investment: established operating history; high forecast cash yield; low leverage; substantial remaining asset life; significant diversification; potential for follow-on investments; and, genuine alignment with an elite industrial and construction partner.
“That was a big demand, but AEI delivers on all those criteria and more. Looking ahead, we are excited to explore further opportunities with our partner Acciona Energía and the wider Acciona Group where we already have substantial dealings in real estate. Pleasingly, this investment takes our infrastructure equity holdings, on behalf of our clients, past €1.8bn.”
José Manuel Entrecanales, chairman and CEO of Acciona, said: “We are excited to welcoming AXA as a new partner and we are sure that, together, we will be able to find opportunities for growth and co-investment in projects of common interest.
“This transaction, in such a difficult market context due to the global lockdown, is a clear evidence of Acciona’s asset quality and of our strength as global developer and operator of sustainable infrastructure.”