ECP Is in Advanced Talks to Acquire Atlantica Sustainable

(Bloomberg) -- Energy Capital Partners is in advanced talks to acquire Atlantica Sustainable Infrastructure Plc, an owner of renewable power assets, according to people with knowledge of the matter.

The private equity firm has been negotiating terms of a deal to buy UK-based Atlantica, the people said, asking not to be identified because the information is private. It could reach a deal as soon as the next few weeks, according to the people.

Shares of Atlantica, which had fallen about 18% in the past year, jumped as much as 12% in US trading Thursday. They closed up 2.4% to $21.42, giving the company a market capitalization of about $2.5 billion. The company is currently valued at about $7 billion including debt, according to data compiled by Bloomberg.

Listed alternative energy companies have been drawing takeover interest after declines in their stock prices. KKR & Co. offered in March to acquire German renewable-power producer Encavis AG in a €2.8 billion ($3 billion) deal. 

Atlantica owns a portfolio of assets across the US, Europe, South America and Africa producing energy using sources such as wind, solar and natural gas. The company said in February last year it was starting a strategic review process to maximize shareholder value. 

Shares of Algonquin Power & Utilities Corp., which owns about 42% of Atlantica according to data compiled by Bloomberg, also rose Thursday. They closed up 3.5% to C$8.90 in Toronto. 

Deliberations are ongoing and there’s no certainty the companies will reach an agreement, the people said. The company could decide against a sale, the people said. A representative for ECP declined to comment. Representatives for Atlantica and Algonquin didn’t immediately respond to requests for comment. 

ECP was founded in 2005 by former Goldman Sachs Group Inc. investment banker Doug Kimmelman. The investment firm has about $30 billion of capital commitments, according to its website.

(Updates with share gain in third paragraph)

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