The EY Energy & Infrastructure Corporate Finance team have advised Real Assets Advisers on the structuring of this landmark transaction in the renewable energy sector.
AXA Investment Managers - Real Assets (“AXA IM - Real Assets”) and Acciona S.A. (“Acciona”) have entered into an agreement to acquire the 33.33% equity stake in Acciona Energía Internacional (“AEI”), currently held by the infrastructure funds of Kohlberg Kravis Roberts & Co. LP (“KKR”). AEI was created in 2014 to hold the majority of Acciona’s renewable energy generation assets located outside of Spain, with Acciona managing the portfolio alongside holding a 66.67% stake. The AEI portfolio includes 52 renewable energy assets, mostly onshore wind farms, with a combined net generation capacity of 2.3 gigawatts. This portfolio is spread around the globe with the assets located mainly in OECD countries including the U.S., Mexico, Canada, Italy, Portugal, South Africa and Australia.
The transaction was structured and facilitated by Real Assets Advisers (“RAA”). At signing, AXA has acquired a 20% stake in AEI whilst Acciona has increased its stake in AEI from 66.67% to 80%, and will look for potential investors to acquire a 5% stake before completion which is expected to take place by the end of the year. EY provided a full suite of buy-side services to RAA and AXA on the transaction, including M&A, commercial, financial and tax due diligence, and tax structuring services.
Commenting on the deal, Isabelle Scemama, Chief Executive Officer of AXA IM - Real Assets: “We set demanding criteria for our first major renewable energy investment: established operating history; high forecast cash yield; low leverage; substantial remaining asset life; significant diversification; potential for follow-on investments; and, genuine alignment with an elite industrial and construction partner. That was a big demand, but AEI delivers on all those criteria and more.”
Roger Ammoun, Managing Partner of RAA, said: “We are pleased that we could intermediate a landmark transaction in the green energy sector that provides a satisfactory outcome for AXA, ACCIONA and KKR. Real Assets would like to thank the EY M&A, FDD and Tax teams for their hard work and expert insight and advice on a complex portfolio spanning 11 jurisdictions and 52 assets.”
Ben Warren, Power & Utilities Corporate Finance Leader at EY added: “EY are delighted to have been involved in this landmark transaction. To complete a complex, multi-jurisdictional and material transaction such as this, in the middle of an unprecedented global crisis, is testament to the quality and tenacity of the teams and individuals involved.”