EQT and Norway’s sovereign wealth fund manager Norges Bank Investment Management have formed a consortium to pursue the acquisition of Spanish renewable energy company Acciona Energia, according to Private Equity Wire, citing Spanish newspaper Expansión. Acciona Energia has an enterprise value of approximately €11.9bn ($13.7bn), including debt, according to LSEG data cited by Private Equity Wire.
Consortium structure and competing bidder
The consortium is led by EQT’s infrastructure business and is competing against French private equity firm Ardian for control of Acciona Energia, according to Private Equity Wire. EQT is expected to hold around 75% of the bidding vehicle, with Norges Bank Investment Management taking the remaining 25%, Expansión reported via Private Equity Wire.
Ardian is considering the opportunity through its infrastructure platform but has not yet formed a consortium, according to Private Equity Wire. Given the size of the transaction, Ardian is expected to seek co-investors if it proceeds with a bid, according to Private Equity Wire.
Process timetable and next steps
The sale process has advanced beyond the initial non-binding offer stage, with Acciona Energia arranging meetings between management and the most interested bidders, according to Private Equity Wire. Potential buyers are expected to submit their proposed prices in October, after which parent company Acciona is expected to select a preferred bidder and enter exclusive negotiations, according to Private Equity Wire.
Any eventual agreement is expected to involve a takeover offer designed to take Acciona Energia private and remove the company from the stock market, according to Expansión as cited by Private Equity Wire.
Advisers and Acciona’s stated options
Acciona is working with Citi and Goldman Sachs as it evaluates strategic options for the renewable energy subsidiary, according to Private Equity Wire. Acciona chairman Jose Manuel Entrecanales has previously indicated that a full disposal of the business was “extremely unlikely”, while outlining alternatives including the sale of a minority stake, according to Private Equity Wire.
Market reaction reported on 15 September
Acciona Energia’s shares rose 4.1% during trading on 15 September following the report, while parent Acciona gained 2.9%, according to Private Equity Wire. EQT shares fell 3.6% on the same day, according to Private Equity Wire.
Widely known context: Norges Bank Investment Management manages Norway’s sovereign wealth fund and is widely known as one of the world’s largest institutional investors.
