(MENAFN- Live Mint) " Energy Capital Partners is in advanced talks to acquire Atlantica Sustainable Infrastructure Plc, an owner of renewable power assets, according to people with knowledge of the matter. The private equity firm has been negotiating terms of a deal to buy UK-based Atlantica, the people said, asking not to be identified because the information is private. It could reach a deal as soon as the next few weeks, according to the people. Shares of Atlantica have fallen about 18% in US trading over the past 12 months, giving it a market capitalization of about $2.5 billion. The company is currently valued at about $7 billion including debt, according to data compiled by Bloomberg.
Listed alternative energy companies have been drawing takeover interest after declines in their stock prices. KKR & Co. offered in March to acquire German renewable-power producer Encavis AG in a €2.8 billion deal.
Atlantica owns a portfolio of assets across the US, Europe, South America and Africa producing energy using sources such as wind, solar and natural gas. The company said in February last year it was starting a strategic review process to maximize shareholder value.
Algonquin Power & Utilities Corp. owns about 42% of Atlantica, according to data compiled by Bloomberg.
Deliberations are ongoing and there's no certainty the companies will reach an agreement, the people said. The company could decide against a sale, the people said. A representative for ECP declined to comment. Representatives for Atlantica and Algonquin didn't immediately respond to requests for comment.
ECP was founded in 2005 by former Goldman Sachs Group Inc. investment banker Doug Kimmelman. The investment firm has about $30 billion of capital commitments, according to its website. With assistance from Gillian Tan and Derek Decloet. This article was generated from an automated news agency feed without modifications to text.
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