KKR launches offer for French renewables producer Albioma

Private equity firm KKR & Co. Inc. has launched a tender offer to acquire French renewable energy producer Albioma at €50 per Albioma share, plus an 84 euro cents cash dividend for fiscal year 2021.

The offer amounts to a deal worth about €1.58 billion, according to S&P Global Market Intelligence data. KKR will fund the transaction through its affiliated infrastructure funds.

The proposal will allow Albioma to speed up its energy transition in French overseas territories and facilitate its international expansion, according to an April 28 company news release.

Albioma owns an installed capacity of over 1 GW, composed of biomass, solar photovoltaics and geothermal projects. It recently acquired two geothermal power plants in Turkey, adding to the 14 power plants it already owns in the French overseas departments, Mauritius and Brazil.

Albioma's board of directors unanimously welcomed the proposal.

Meanwhile, Bpifrance, which holds 5% of Albioma's capital, plans to retain its investment in the company, subject to the approval of internal governance bodies, delivery of an informed opinion by its board and the completion of the offer.

The tender offer will be subject to KKR obtaining at least 50.01% of Albioma's share capital and "theoretical" voting rights. KKR plans to request a "squeeze out" and delisting of Albioma's shares if it obtains 90% of the share capital and voting rights.

Completion of the transaction is also subject to European Commission merger control approval and foreign investment control clearances from France and Spain.

JP Morgan Securities PLC and Darrois Villey Maillot Brochier AARPI are acting as exclusive financial adviser and legal adviser, respectively, to Albioma.

Société Générale is acting as exclusive financial adviser and presenting bank of the tender offer, while Bredin Prat is the legal adviser to KKR.

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