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 a report by Spanish newspaper Expansión.
The consortium, led by EQT’s infrastructure business, is competing against French private equity firm Ardian for control of the renewable energy group. EQT is expected to hold around 75% of the bidding vehicle, with Norges Bank Investment Management taking the remaining 25%, Expansión reported.
Acciona Energia has an enterprise value of approximately €11.9bn ($13.7bn), including debt, according to LSEG data, making the potential transaction one of the larger European infrastructure opportunities currently in the market.
The sale process has advanced beyond the initial non-binding offer stage, with Acciona Energia arranging meetings between management and the most interested bidders. 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.
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 Expansion.
Ardian is considering the opportunity through its infrastructure platform but has not yet formed a consortium. Given the size of the transaction, the private equity firm is expected to seek co-investors if it proceeds with a bid.
Acciona is working with Citi and Goldman Sachs as it evaluates strategic options for the renewable energy subsidiary. 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.
Acciona Energia’s shares rose 4.1% during trading on 15 September following the report, while parent Acciona gained 2.9%. EQT shares fell 3.6%.
