By Christopher Bjork
MADRID--U.S. private-equity fund Global Infrastructure Partners
has agreed to buy up to 24.4% of a renewable energy unit that
Spanish builder Actividades de Construccion y Servicios plans to
spin off, ACS said.
The financial terms will depend on the price ACS gets when it
sells shares in the unit, Saeta Yield SA, in a planned initial
public offering.
Spanish media has reported that ACS is seeking a valuation of
roughly EUR1 billion ($1.16 billion) for the business.
ACS said in a regulatory filing that GIP will also acquire a 49%
stake in a new company that will group renewable energy assets
under development by ACS.
The deal between the New York infrastructure investor and the
Madrid-based construction company is conditional on the planned
listing of Saeta Yield going ahead and on authorization from
competition regulators, ACS added.
ACS said earlier this month that it plans to sell 51% of Saeta
Yield, which initially will own 16 wind farms and three solar
plants totaling 689 megawatts of installed energy generation
capacity. The company will have a "right of first refusal" option
to buy renewable energy assets under development by ACS, in Spain
and elsewhere.
Saeta Yield is structured as a yield company--known on Wall
Street as yieldcos--that are publicly traded firms that hold assets
producing a steady and predictable flow of income, such as energy
plants, that have long-term distribution agreements. The cash flow
is distributed among investors in the vehicle as dividends.
Write to Christopher Bjork at christopher.bjork@wsj.com
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