~$6bn Valuation: Repsol in Talks to Divest Stake in Renewable Energy Platform

Repsol is in early negotiations to sell a stake in its renewable energy unit following an unsolicited investor approach.

🤝 Deal Details:

– Up to 25% stake for sale
– Sale managed by Santander
– Valuation: €5.9bn for 100% of the unit

💼 PE Firms Seizing the Opportunity:

– The European market currently sees high interest from PE firms in renewable platforms
– Their ‘buy and hold long-term’ approach fits perfectly with the current market dynamics
– In line with major moves by KKR, Viessmann, Asterion, and EQT in Europe since 2023
– More recently, EIP finalized the purchase of a minority stake in Plenitude, the renewable platform of another European O&G firm, Eni.

🌍 Portfolio Details:

– Over 5 GW of solar, wind, and hydro projects
– Primarily in Spain, with a presence in Chile and the US
– Recently expanded US presence through acquisitions of Hecate Energy, ConnectGen, and Asterion Energies

🔍 Strategy:

– Capital from the sale supports its strategic plans through 2027
– Over €9bn planned investment in low-carbon and renewable energy
– Targeting 9-10 GW of installed renewable capacity by 2027