Brookfield Renewable Partners is to take a 50% stake in the Spanish solar developer X-Elio in a deal valued at $500m.
Under the terms of the deal, Brookfield will form a 50:50 joint venture with global investment firm KKR for X-Elio by acquiring 30% of the latter’s interest and Acek’s 20% stake in the PV company.
X-Elio has 273MW operating globally, 1413MW under construction and a 4.8GW development pipeline in Spain, US, Mexico, Chile and Japan.
The transaction is subject to customary closing conditions and is expected to close in the fourth quarter of this year.
Brookfield Renewable chief executive Sachin Shah said: “We are delighted to be partnering with KKR through this transaction and are pleased that we share a vision for X-Elio’s strong prospects as a solar development leader.
“This is a unique opportunity to invest in a high-quality portfolio of operating assets including a near-term pipeline of construction assets with an experienced management team, integrated development platform and best-in-class contracting capabilities.
“This investment allows us to grow our solar capabilities to include global solar development and offers another meaningful growth lever for our business.”
KKR Member head of European infrastructure Tara Davies said: “We’re looking forward to working alongside Brookfield and building on our close relationship with X-Elio’s management to help the business progress to the next stage of its growth.
“Our continued commitment to X-Elio builds on our strong track record of developing renewable energy assets and investing behind the global renewable energy transition.”
X-Elio chief executive Jorge Barredo Lopez said: “This announcement marks the beginning of an exciting new stage for X-Elio. Brookfield brings further global expertise and a depth of management and operating experience and I look forward to working with both Brookfield and KKR going forward.
“Acek has been pivotal to X-Elio’s story to date, and I would like to thank them for their commitment and support throughout these years.”