Spain's Grenergy shares jump after $962 mln Chile assets sale to KKR (updated)
18/12/2024 10:13
(Adds share move in paragraphs 1 and 3, analyst comment in 2)
Dec 18 (Reuters) - Shares in Grenergy GREG.MC jumped
as much as 28% on Wednesday morning after the Spanish renewable
energy company struck a deal to sell an asset portfolio in Chile
to ContourGlobal, a KKR company KKR.N , for an enterprise value
of $962 million.
"The sale will reduce leverage, unlock value that the market
was not recognising and free up capital to accelerate the
investment plan," analyst Eduardo Inmedio from brokerage Renta 4
said in a note to investors.
Grenergy shares were up 19% in mid-morning trade, partly
recovering from a 28% decline since early November when the
company reported a 91% drop in nine-month net profit.
The deal with KKR includes $50 million based on the
achievement of certain milestones and debt of $643 million,
Grenergy said in a filing to the Spanish stock market regulator
late on Tuesday.
The assets include a 23% stake in Oasis de Atacama, the
largest electricity storage project in the world with a capacity
of nearly 11 gigawatt hours, and solar energy generation
projects with a potential capacity of 2 gigawatts.
The deal is expected to be completed in the coming days,
Grenergy said.
(Reporting by Jakub Olesiuk and Joanna Jonczyk-Gwizdala in
Gdansk. Editing by Louise Heavens and Mark Potter)
((gdansk.newsroom@thomsonreuters.com; +48 58 772 0920;))