KKR boosts renewable energy presence with $2.2 bn deal for ContourGlobal

Renewable energy in Cambodia

Private-equity firm KKR has agreed to buy London-listed power generation company ContourGlobal for 1.75 billion pounds ($2.16 billion) in order to expand its presence in renewable energy.

KKR will pay 263.6 pence for each share of ContourGlobal, representing a 36 percent 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 40 percent reduction of CO2 emissions intensity by 2030, and to be net-zero carbon by 2050,” the private-equity powerhouse said in a statement.