KKR boosts renewable power presence with $2.2 billion deal for ContourGlobal

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FILE PHOTO: Trading information for KKR & Co is displayed on a screen on the floor of the NYSE in New York

(Reuters) -U.S. private-equity firm KKR has agreed to buy London-listed power generation company ContourGlobal for 1.75 billion pounds ($2.16 billion) in an effort to expand its presence in renewable energy.

Under the deal announced on Tuesday, KKR will pay 263.6 pence for each share of ContourGlobal. That represents a 36% premium to the company’s closing price on Monday.

ContourGlobal, which operates 138 thermal and renewable power plants across Europe, Latin America, North America and Africa, will recommend that its shareholders accept the offer, KKR said.

The company will add to KKR’s infrastructure investments that span industries such as renewables, utilities, transportation, water and communications.

“KKR believes it can support ContourGlobal … which aims at a meaningful 40% reduction of CO2 emissions intensity by 2030, and to be net-zero carbon by 2050,” the private-equity powerhouse said in a statement.

($1 = 0.8089 pounds)

(Reporting by Sinchita Mitra in Bengaluru; Editing by Aditya Soni)

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