KKR agrees to acquire London-based ContourGlobal for $2.2 billion
KKR is looking to expand its presence in the renewable energy sector after agreeing to a $2.2 billion deal to acquire London-based ContourGlobal.
United States-based private equity firm KKR announced earlier today that it has agreed to acquire London-based ContourGlobal in a deal worth approximately $2.2 billion.
This latest development would see Kohlberg Kravis Roberts & Co. L.P. (KKR) expands its presence in the renewable energy space.
According to the deal announced by KKR today, the company said it will pay 263.6 pence for each share of ContourGlobal. This represents a 36% increase to ContourGlobal’s closing price on Monday.
The deal would be handled by Cretaceous Bidco, a newly formed company wholly owned by funds advised by KKR and its affiliates.
ContourGlobal focuses on renewable energy and current 138 thermal and renewable power plants across Europe, Latin America, North America and Africa. The company said it will advise its shareholders to accept KKR’s offer.
The acquisition of ContourGlobal will add to KKR’s infrastructure investments. KKR has massive investments in numerous sectors including renewables, utilities, transportation, water and communications.
The KKR team said in a statement issued on Tuesday that;
“KKR believes it can support ContourGlobal … which aims at a meaningful 40% reduction of CO2 emissions intensity by 2030, and to be net-zero carbon by 2050.”
The shares of CounterGlobal are up by more than 33% on the London Stock Exchange since the deal was announced earlier today.
AJ Bell investment director Russ Mould commented that;
“Power generation business ContourGlobal, which has struggled to gain traction on the stock market after a 2017 IPO, looks set to disappear from London as private equity firm KKR swooped for its portfolio of energy projects from across the world. With Contour set to recommend the takeover offer, which is pitched at a healthy premium, the deal looks like a fait accompli at this stage.”
The two companies could provide further details about the deal over the coming days and weeks.