Ardian Infrastructure has signed a put option agreement to buy a majority stake in French solar developer GreenYellow for an enterprise value of €1.4 billion.
The proposed transaction, which values the equity in the business at €1.1bn, is expected to close in the fourth quarter of 2022.
The sale is being conducted by French supermarket giant Casino Group, Tiekhau Capital and Bpifrance.
The sellers had been mulling the disposal for several months and had tapped Rothschild and BNP Paribas to advise on the transaction, as first reported in the subscriber-only reNEWS newsletter.
The company has to date installed around 720MW of solar capacity and is active in 16 countries, with a strong presence in Africa.
Casino Group is meanwhile expected to make a €165m reinvestment in the company, meaning its proceeds from the disposal would amount to €600m.
Jean-Charles Naouri, Chairman and CEO of Casino Group, said: “This agreement testifies to the success of GreenYellow which, thanks to the ability of its managers to imagine, develop and grow a unique concept, has become a major player in photovoltaic production and energy efficiency in France and abroad.
“As the energy sector is at the heart of the economic strategy of the States and as the Casino group believes in the future development capabilities of GreenYellow, we have decided to remain involved in the value creation of the company on a long-term basis alongside Ardian Infrastructure, Tikehau Capital and Bpifrance.”