Renewable energy producer Encavis, which runs wind and solar parks across Europe, is in discussions to be acquired by global buyout firm KKR & Co in a deal that could value the German company at more than €2bn, according to a report by Bloomberg.
The report cites unnamed sources as confirming that the buyout firm is in advanced negotiations on terms of a potential transaction, which could be agreed by as early as next week.
A statement from Encavis on Wednesday confirmed that it was in contact with KKR regarding a potential acquisition but did not give additional details.
“As the talks are at an early stage, there can be no assurance that a potential transaction will be proposed or consummated,” Encavis said in the statement.
A sector-wide decline in renewable energy stocks prompted by elevated interest rates has seen shares of Encavis plunge by more than 50% since reaching a record high in January 2021, giving the company a market value of about €1.9bn as of midday Wednesday.
