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Spain,United Kingdom : KKR to buy one third stake in ACCIONA ENERGIA INTERNATIONAL

June 25, 2014

KKR, a private equity major announced that it is ready to acquire one-third stake in Acciona Energia International ahead of a likely floatation of its assets.

Prior to the end of 2014, KKR's 417m (334m, $567m) investment, anticipated to shut and foster would raise one of the world's major renewable energy portfolios, making it more attractive to potential investors in the run up to a potential initial public offering (IPO).

Outside Spain, AEI would possess Acciona Energia's operating renewable assets including 2.3 GW in 14 countries, involving the US, Mexico, Italy, Portugal, Australia and South Africa.

The portfolio will rake in an estimated cash flow of 120m, the statement added.

As per the plans of KKR and Acciona, with the so-called yieldco vehicle that will hold all or part of AEI's assets are aiming for IPO.

Yieldcos typically own and operate some assets of their parent companies. They also sign long-term sale agreements with power utilities, which assure a stable cash flow.

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Source: TendersInfo (India)

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