Atlantica Sustainable Infrastructure to be acquired by Energy Capital Partners

Atlantica Sustainable Infrastructure has entered into a definitive agreement pursuant to which a private limited company incorporated in England and Wales has agreed to acquire 100% of the shares of Atlantica for $22 per share in cash. Bidco is controlled by Energy Capital Partners, an investor across energy transition, electrification and decarbonization infrastructure assets, and includes a large group of institutional co-investors. The purchase price represents an 18.9% premium to Atlantica’s closing share price on April 22. Further, the purchase price represents a 21.8% premium to the 30-day volume weighted average trading price as of April 22, 2024. The transaction values Atlantica at an equity value of approximately $2.56B. Algonquin Power & Utilities and Liberty, which hold approximately 42.2% of Atlantica’s shares, have entered into a support agreement with Bidco pursuant to which Algonquin has agreed, subject to the terms of that agreement, to vote its shares in favor of the Scheme. The transaction is subject to, among other conditions, approval by Atlantica’s shareholders of the Scheme, sanction of the transaction by the High Court of Justice of England and Wales, and regulatory approvals in different jurisdictions, including clearance under the HSR Act, by the Committee on Foreign Investment in the U.S. and by the FERC in the U.S. The transaction is expected to close in 4Q24 or early 1Q25. Upon the completion of the transaction, Atlantica will become a privately held company and its shares will no longer be listed on any public market. Atlantica expects to continue paying its current quarterly dividend of $0.445 per share through to the closing of the transaction, subject to the approval of its board of directors.