November 23 (Renewables Now) - Spanish engineering and renewables company Abengoa SA (BME:ABG) announced on Thursday it has satisfied the conditions required to close the sale of its 16.47% stake in Atlantica Yield Plc (NASDAQ:AY).
The transaction is expected to be finalised in the coming days.
The European company is selling its remaining shares in the yieldco to Canadian utility Algonquin Power & Utilities (TSX:AQN) for USD 20.90 (EUR 18.33) per share, or USD 345 million in total. Abengoa intends to use the net proceeds, estimated at USD 285 million, for debt repayment.
"Abengoa has successfully fulfilled the plan which was drawn up to ensure the company’s viability, particularly regarding its disinvestment commitments," said Gonzalo Urquijo, Abengoa’s executive chairman.
This is the second time Algonquin Power acquires Atlantica Yield shares from Abengoa. This past March, the company became the largest shareholder of the yieldco with a 25% stake. With the additional 16.47%, it will hold 41.47 % of its share capital, while Abengoa will have fully sold all its stake.
(USD 1 = EUR 0.88)