KKR in Talks to Invest in French Renewable Energy Firm Albioma – EQ Mag Pro
Albioma SA, the French producer of solar and biomass power, confirmed it’s in discussions with private equity firm KKR & Co.
Talks are at a preliminary stage and there’s no certainty they will succeed, Albioma said in a statement Wednesday. KKR has been considering a potential takeover bid for Albioma as it seeks to boost its renewable energy investments, Bloomberg News reported earlier this week.
Shares of Albioma gained for a second day, jumping as much as 12% in early Wednesday trading. They were up 2% at 9:53 a.m. in Paris, giving the company a market value of about 1.2 billion euros ($1.3 billion).
Renewable energy firms are in high demand amid the global shift to better environmental standards. The European Renewable Energy Index has gained 26% from a low in late February as the Russian invasion of Ukraine focuses investors’ minds on the rising need for energy alternatives.
Albioma could also attract interest from other private equity and infrastructure investors, as well as oil and gas producers seeking to boost their exposure to renewables, people with knowledge of the matter have said.
Global spending on the transition to low-carbon energy rose by more than a quarter to $755 billion in 2021, according to BloombergNEF. Deals included a JPMorgan Chase & Co. fund’s takeover of Falck Renewables SpA valuing the Italian energy firm at nearly $3 billion. This week, a consortium led by Macquarie Group Ltd. agreed to acquire French solar farm developer Reden Solar SAS for an enterprise value of 2.5 billion euros.
Shares of Albioma have fallen over the past year as the cost of renewable energy projects rises and the French government trims some subsidies. The stock has also been hit by its removal from a key S&P Dow Jones clean energy index.
Source : bloombergquint
