Global investment firm KKR is buying a renewable energy company ContourGlobal for £1.75bn (€2.1bn).
KKR is offering shareholders of ContourGlobal 263.6p for each share, an offer price which represents a 36% premium to ContourGlobal’s last closing price of 193.4p.
The acquisition values the entire issued and to be issued ordinary share capital of ContourGlobal at £1.75bn and $2.14bn (€2.03bn) on a fully diluted basis, and an enterprise value of $6.14bn.
The all-cash acquisition – implemented by a court-approved agreement – is expected to be recommended unanimously by the ContourGlobal board.
KKR said it believes that ContourGlobal’s existing business provides a “compelling platform for significant future organic and inorganic value-accretive growth”, driven by the changing nature of the energy industry as a result of decarbonisation targets.
ContourGlobal is an international owner and operator of contracted wholesale power generation businesses with approximately 6.3GW in operation in 20 countries. The London-listed company operates a portfolio of 138 thermal and renewable power plants across Europe, North America, Latin America, and Africa.
In mid-morning trading, ContourGlobal shares traded 33.5% higher at 258.25p, valuing the FTSE 250 company at £1.3bn.
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