London-headquartered Atlantica Sustainable Infrastructure, which is listed on the US NASDAQ, is to go private after accepting a takeover offer from a private equity firm which values it at $2.5bn (£2bn).
The renewable energy developer is to be snapped up by Energy Capital Partners (ECP) which is to acquire 100 per cent of its shares for $22 (£17) per share in cash.
The price is an 18.9 per cent premium to Atlantica’s closing share price on April 22, 2024, the last trading day prior to the emergence of reports regarding a potential acquisition of the company.
Algonquin Power & Utilities Corp and Liberty (AY Holdings), B.V. (collectively Algonquin), which hold approximately 42.2 per cent of Atlantica’s shares, have backed the deal.
Atlantica’s chairman Michael D. Woollcombe said: “This transaction is the culmination of a thorough and comprehensive strategic review process.
“After carefully analysing all reasonably available alternatives with the assistance of external advisors over a prolonged period, our board unanimously concluded that this transaction represents the best value maximising alternative available and that its completion is in the best interest of Atlantica and its shareholders. The support of our largest shareholder reinforces that conclusion.”
Atlantica returns to the black ahead of takeover
The deal comes after Atlantica reported a revenue of $1bn for 2023, down from $1.1bn in 2022 while its went from making a pre-tax loss of $11.7m to a profit of $37.2m.
Atlantica’s chief executive Santiago Seage added: “We expect to continue executing on our growth strategy as a private company with the support of our new partners.
“ECP has a long track record and expertise in the sustainable infrastructure sector and, together with its global co-investors, will enhance Atlantica’s ability to finance and deliver growth while maintaining our focus on safety, sustainability and value creation.”
Atlantica recently reported a first quarter revenue of $242.9m for the three months to March 31, 2024, up slightly from the $242.5m it posted for the same period in 2023. However, its pre-tax losses widened from $15.6m to $28m.
Energy Capital Partners is an American investment firm headquartered in Summit, New Jersey.
In January 2023, ECP completed a £2bn take-private deal of waste management company Biffa.
Andrew Gilbert, a partner of ECP, said: “Atlantica’s employees and management team have a long and impressive track record of maximising value across a complex set of global assets.
“ECP is excited about the opportunity to partner with the company and to support and accelerate its growth.”