Algonquin Power & Utilities Corp. on March 9 said it completed the purchase of a 25% equity interest in Atlantica Yield plc from Abengoa SA for $608 million.
The consideration paid is based on the $24.25 price per ordinary Atlantica share, plus a contingent payment of up to 60 cents per share that is payable two years after deal closing, subject to certain conditions.
The minority stake represents about 25 million shares and entitles an Algonquin Power subsidiary to receive Atlantica Yield's dividend of 31 cents per share on or before March 27. The dividend is accretive to Algonquin Power's earnings and cash flow per share.
Through the transaction, Algonquin Power will have a stake in Atlantica Yield's long-term contracted portfolio of 22 facilities, representing 1.7 GW of clean power generating capacity.
Algonquin Power also announced that it completed the formation of the AAGES joint venture with Abengoa.
The joint venture will focus on developing global clean energy and water infrastructure assets. Atlantica Yield will have the right of first offer for projects undertaken by AAGES.
Raymond James Ltd. acted as exclusive adviser to Algonquin Power for the transaction.
