Algonquin closes USD-345m acquisition of Atlantica Yield shares

Solar park in Spain. Featured Image: MilaCroft/Shutterstock.com

November 28 (Renewables Now) - Canadia’s Algonquin Power & Utilities (TSX:AQN), or APUC, said on Tuesday it has completed the acquisition a 16.5% stake in Atlantica Yield Plc (NASDAQ:AY), lifting its shareholding in the Spanish yieldco to 41.5%.

The Canadian renewable energy company bought the additional stake from Spanish engineering and renewables company Abengoa SA (BME:ABG) for USD 345 million (EUR 305.9m), as agreed in April. This is the second time APUC acquires Atlantica Yield shares from Abengoa after in March it became the largest shareholder of the yieldco with a 25% stake. Following the latest transaction, it will hold 41.5% of its share capital, while Abengoa will not keep shares in the company.

Atlantica Yield has over 1.7 GW of renewables in operation, as well as 300 MW of natural gas power plants and transmission lines and water assets. "This incremental investment in Atlantica deepens our interest in an attractively-priced portfolio of high quality, international operating assets, one which is accretive to APUC's earnings," said CEO Ian Robertson.

APUC noted that some USD 305 million of the overall price for acquiring the 16.5% stake was paid on closing the deal, while up to USD 40 million will be paid at a later point, after certain conditions have been met. The Canadian firm added it will be able to receive Atlantica’s upcoming quarterly dividend of USD 0.36 per share, to be paid on December 14.

(USD 1.0 = EUR 0.887)

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Veselina Petrova is one of Renewables Now's most experienced green energy writers. For several years she has been keeping track of game-changing events both large and small projects and across the globe.

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