United States based private equity firm KKR & Co Inc. (KKR) will be acquiring wholesale power generation company ContourGlobal PLC (LON: GLO) in a deal worth 1.75 billion pounds ($2.16 billion). KKR says this acquisition deal will come as a strategy of expanding its presence in the renewable energy industry.
According to the acquisition deal, KKR will pay 263.6 pence for each share of ContourGlobal representing a 36% share premium of the stock’s closing price on May 16. ContourGlobal runs 138 thermal and renewable power plants across Europe, Latin America, North America and Africa. KKR expects the company will advise its shareholders to accept the offer.
“KKR believes it can support ContourGlobal which aims at a meaningful 40% reduction of CO2 emissions intensity by 2030, and to be net-zero carbon by 2050,” said KKR.
Once the deal is closed, ContourGlobal will be added to KKR’s infrastructure investments which include industries such as renewables, utilities, transportation, water and communications.