ContourGlobal is reportedly selling 49 percent stake of company’s 250 MW Concentrated Solar Power (CSP) plants in South-West Spain, which they bought from Acciona SA in early 2018.
As per the agreement, ContourGlobal will sell 49 percent stake in the Concentrated Solar Power (CSP) Portfolio to Credit Suisse Energy Infrastructure Partners (CSEIP). The selling price of the shares is to be paid in cash – close to EUR 134 million. This is apparently representative of a premium of EUR 65 million to ContourGlobal’s net investment in the 49 percent stake.
Sources familiar with the knowledge of the matter claim that the deal is expected to close in the second quarter, by the end of next year, which concerns five CSP facilities in southwest Spain that are governed under the country’s renewable scheme. The five plants will continue to be managed, operated, and maintained by ContourGlobal.
ContourGlobal continues to guide for adjusted 2018 earnings before interest, tax, depreciation, and amortization (EBITDA) of USD 600 million to USD 630 million on a constant currency basis, despite renewable resources not meeting performance expectations in certain markets.
Joseph C. Brandt, President and Chief Executive Officer of ContourGlobal, said that they are happy to expand their association with CSEIP in Europe with their second sale of minority interests this year. He added that CSEIP is a leading investor in the infrastructure field, a committed long-term partner, with in-depth industry expertise, having unique sourcing and distribution capabilities. ContourGlobal looks forward to extending the partnership into new markets, he further claims.
Continuing with his comments on the stake sale, Brandt stated that ContourGobal will continue to look for opportunities to increase stakeholder returns and redeploy capital into their significant growth process by selling minority shares in their global portfolio of businesses to the committed infrastructure investors who are looking to invest for a long-term with strategic operating partners.