KKR has made three announcements regarding an agreement to buy French renewable energy producer Albioma in a €1.6bn deal, a tender offer for Hitachi Transport System in Japan and the launch of a renewable energy storage project platform in Asia.
KKR has agreed to pay shareholders of Euronext Paris-listed Albioma €50 for each share held, plus €0.84 in dividend payment. KKR said it will fund the transaction through its affiliated infrastructure funds.
Albioma is an independent renewable energy producer, with an installed capacity of over 1GW. The company owns 14 power plants in French overseas departments, Mauritius and Brazil.
Frédéric Moyne, Albioma’s chairman and CEO said the board welcomes this proposal and has formed an ad hoc committee composed of a majority of independent directors to evaluate its terms, in the interest of all of the group’s shareholders and stakeholders.
Vincent Policard, partner and co-head of European infrastructure at KKR, said: “Alongside Frédéric Moyne and Albioma’s team, KKR is committed to accelerate energy transition in French overseas departments and the international expansion, while significantly increasing renewables in the energy mix to facilitate the exit from fossil fuels.”
In the second announcement, KKR said it intends to make a JPY8,913 (€64.76) per share tender offer for the common shares of Hitachi Transport System and a JPY6,632 per share buyback for the third-party logistics business.
KKR, which plans to finance the deal mainly from its Asia IV fund, expects to commence the tender offer by late September 2022
Hiro Hirano, co-head of Asia Pacific private equity at KKR and CEO of KKR Japan, said: “We look forward to utilising KKR’s global network and expertise to accelerate Hitachi Transport System’s next phase of growth and help the Company achieve its goal of becoming the leading 3PL company in Asia through technology enablement and inorganic growth in a collaborative manner.”
In the third announcement, KKR said it has launched Aster Renewable Energy to develop, build and operate solar, wind and energy storage projects in Taiwan and Vietnam, while potentially expanding into other markets in Asia.
KKR is making its investment from its Asia-Pacific Infrastructure Fund.
The new renewable energy platform, based in Singapore, kicks off with an investment in a commercial solar photovoltaic project in Taiwan.
Aster is the second platform in Asia for KKR, which last October launched Virescent Infrastructure to own solar assets in the Indian states of Maharashtra and Tamil Nadu in the Indian subcontinent.
Michael de Guzman, managing director of KKR’s Asia-Pacific Infrastructure team, said: “The launch of Aster reflects KKR’s confidence in Asia’s renewables sector and the important role it plays in our broader Asia infrastructure strategy.
“We believe we have reached an inflection point where there is a strong convergence of favourable geographical characteristics and resources, supportive government policies, and demand for sustainable energy solutions to meet the region’s growing needs.”
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