Case Studies


Algonquin’s Acquisition of a 25% Stake in Atlantica Yield

TRANSACTION OVERVIEW

  • On November 1, 2017, Algonquin Power & Utilities Corp.
    (“Algonquin”) announced its strategic investment in
    Atlantica Yield
  • Algonquin will acquire a 25% interest in Atlantica Yield
    from Abengoa for $608 million
  • Algonquin and Abengoa will form Abengoa-Algonquin
    Global Energy Solutions (“AAGES”) as a joint venture to
    develop and construct clean energy and water projects

ALGONQUIN OVERVIEW

  • Headquartered in Ontario, Canada, Algonquin is a leading
    North American diversified generation, transmission and
    distribution utility (NYSE: AQN)
  • Algonquin services 756,000 regulated customers and
    operates 1.5 GW of net renewable generation capacity
  • M&A has been an integral component of Algonquin’s
    growth strategy; Algonquin has acquired over 20 utility
    systems since 2000, with a primary focus on North
    America
  • Through the acquisition of Atlantica Yield, Algonquin
    seeks to expand its international presence and to pursue
    risk-adjusted returns that are more attractive compared to
    those in the highly competitive North American market

ATLANTICA YIELD OVERVIEW

  • Atlantica Yield is a YieldCo sponsored by Abengoa,
    which owned a 41.5% stake in Atlantica Yield prior
    to the transaction
  • Atlantica Yield went public on June 13, 2014, and is
    listed on the NASDAQ under the name Abengoa Yield
    (NASDAQ: ABY)
  • Atlantica Yield owns and operates a diversified, global
    portfolio of contracted renewable energy, power
    generation, electrical transmission and water assets

GREENTECH’S ROLE

  • Greentech served as exclusive financial
    advisor to Atlantica Yield, providing advice
    to the Board on the transaction, including
    due diligence preparation, detailed review
    of transaction documents, benchmarking
    analysis of the ROFO agreement, review
    of precedent transactions to support the
    negotiation of the transaction and potential
    alternatives
  • Greentech’s deep industry knowledge
    and extensive transaction experience
    allowed Atlantica Yield to negotiate a
    complex transaction structure and secure
    a favorable outcome for its shareholders

WHAT THE TRANSACTION
MEANS FOR THE RENEWABLE ENERGY
INFRASTRUCTURE SECTOR

  • This is an industry defining transaction,
    where Algonquin became the new sponsor
    of Atlantica Yield alongside Abengoa,
    which emerged from bankruptcy in
    April 2017
  • The partnership with a strong, financially
    stable North American shareholder and
    sponsor improves visibility on Atlantica
    Yield’s near-term growth and provides line
    of sight to long-term accretive growth

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