KKR expands its foothold in renewable energy with a $2.2 billion acquisition of ContourGlobal.
In an attempt to increase its foothold in renewable energy, U.S. private-equity firm KKR has agreed to acquire London-listed power generation business ContourGlobal for 1.75 billion pounds ($2.16 billion).
According to the agreement announced on Tuesday, KKR will pay 263.6 pence for each ContourGlobal share. This is a 36 percent premium over the company’s Monday closing price.
KKR said that ContourGlobal, which runs 138 thermal and renewable power plants in Europe, Latin America, North America, and Africa, would tell its shareholders to take the offer.
The company will add to KKR’s infrastructure assets, which include renewable energy, utilities, transportation, water, and communications.
“KKR thinks it can help ContourGlobal… which intends to reduce CO2 emissions intensity by 40 percent by 2030 and to be carbon neutral by 2050,” the private-equity behemoth said in a statement.
One dollar equals 0.8089 pounds.
