Algonquin snaps up 25% of Atlantica Yield

Canadian renewable energy company Algonquin Power & Utilities (TSX:AQN) has closed the acquisition of a 25% stake in Atlantica Yield Plc (NASDAQ:AY), becoming the largest shareholder of the yieldco.

In a press release on Friday, Algonquin said that it has purchased the stake in a USD-608-million (EUR 493m) deal, paying USD 24.25 per share. Within a period of 60 days after closing of the transaction, the Canadian firm has the option to buy an additional 16.47% in the yieldco and build up a 41.47% stake.

Atlantica Yield, set up by Spain's Abengoa (BME:ABG), owns 1.44 GW of renewable and 300 MW of conventional energy assets, as well as transmission lines and water assets, located in the Americas and EMEA.

Apart from closing the 25%-stake acquisition, Algonquin Power also said it has completed the establishment of Abengoa-Algonquin Global Energy Solutions (AAGES), a joint venture that will be involved in the development and construction of clean energy and water infrastructure assets. Those projects, to be undertaken by AAGES under a right of first offer (ROFO) agreement, are expected to be “an important source of future growth for Atlantica,” Algonquin Power said.

(USD 1.0 = EUR 0.8111)

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