Repsol And Engie Are Competing To Buy Asterion, A Renewable Power Company

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Repsol And Engie Are Competing To Buy Asterion, A Renewable Power Company
19 Oct 2022
min read

News Synopsis

According to three sources with knowledge of the matter who spoke to a media agency, the Spanish oil and gas company Repsol REP.MC and the French utility Engie ENGIE.PA has made preliminary approaches to acquire the European renewable energy provider Asterion Energies.

Asterion, a Madrid-based company, is building wind and solar power facilities with a 6 gigawatt projected capacity in Spain, France, and Italy. Although renewable energy is intermittent, a gigawatt of power is roughly equivalent to the average output from one nuclear reactor.

According to the sources, the investment bank Greenhill, which is handling the sale, began collecting non-binding offers from a select number of interested parties this week.

Depending on interest from bidders, the value of Asterion, which is controlled by the investment fund Asterion Industrial Infra I, might reach 750 million euros ($738.08 million).

The potential sale would take place in the midst of a volatile market and mounting funding difficulties for most buyers. Asterion, Greenhill, and Repsol all declined to comment. An inquiry for comments was not answered by Engie.

According to two sources, Asterion Industrial Infra may decide to maintain control in the absence of compelling offers from outside investors and pursue the so-called continuation fund strategy, in which investment firms transfer ownership interests in one or more portfolio companies from one fund to another.

According to the sources, some of the power plants are already in operation, while others are in various phases of development. A staff of 29 individuals is involved in the sale.

Repsol has constructed more than 1.6 gigawatts of renewable power facilities throughout the world, joining other oil and gas companies in doing so in response to pressure from shareholders and the government to reduce carbon emissions.

Repsol stated in September that the $4.8 billion cash infusion it obtained from the sale of a share in its oil and gas exploration sector to American investor EIG will help its low-carbon business.

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