Abengoa is considering selling the remaining 16.5% stake it holds in Atlantica Yield, and some investment funds could be interested in a possible deal, according to various press reports.
In November, the engineering and renewable energy company sold 25% of Atlantica Yield to Algoquin Power & Utilities for $607 million. The deal also gave the Canadian firm the option to acquire Abengoa’s remaining shares in Atlantica Yield.
But Bankinter analysts flag that “it’s very likely” Algoquin Power & Utilities will not take up the afore-mentioned option, given that the agreed price was $24,25/share, while the share price closed yesterday in New York at $21,45. The analysts add:
“This will have a moderately negative impact on the share price in the short-term. It’s reasonable to think that Algoquin Power & Utilities will buy the remaining stake at around market prices. Or, perhaps less likely, that a third party enters the ring and acquires the stake also at market prices. This would be a purely financial investment. We estimate the sale of the 16.5% at market prices would raise some $354,6 million, some $46,3 million less than if Algoquin Power & Utilities bought it at the price agreed on in November.”
According to the press reports, funds like Brookfield and bcIMC could interested in buying Abengoa’s remaining stake in Atlantica Yield.