LONDON - Atlantica Sustainable Infrastructure plc (NASDAQ: AY), a company focused on sustainable infrastructure, has announced that its shareholders have given the requisite approvals for its acquisition by Energy Capital Partners and a consortium of co-investors. The preliminary results from the shareholder meetings indicate full approval, with final voting results to be published in the near future.
The acquisition, still subject to various conditions, requires sanction from the High Court of Justice of England and Wales and regulatory clearances from multiple jurisdictions, including the Committee on Foreign Investment in the United States and the Federal Energy Regulatory Commission. The expected closure of the transaction is projected for the fourth quarter of 2024 or early in the first quarter of 2025.
Further details on the transaction and related agreements have been provided in the Reports of Foreign Private Issuer on Form 6-K filed by the company on May 28, 2024, and July 16, 2024. These reports, which include the full text of the agreements as exhibits, contain comprehensive descriptions that are essential for understanding the transaction in its entirety.
In other recent news, Atlantica Sustainable Infrastructure plc has consented to a buyout by a consortium led by Energy Capital Partners (ECP), a private equity firm specializing in energy infrastructure investments. The agreement, which values Atlantica at roughly $2.55 billion, will result in Atlantica shareholders receiving $22 per share in cash. The acquisition is supported by Atlantica's largest shareholders, Algonquin Power & Utilities Corp., and Liberty (AY Holdings), B.V., who collectively hold approximately 42.2% of Atlantica's shares.
Michael D. Woollcombe, Chair of Atlantica’s Board of Directors, and Santiago Seage, CEO of Atlantica, both expressed positive sentiments about the acquisition. Andrew Gilbert, a Partner at ECP, also mentioned the opportunity to accelerate Atlantica's growth through this partnership.
InvestingPro Insights
As Atlantica Sustainable Infrastructure plc (NASDAQ: AY) progresses through its acquisition process, investors and stakeholders may be curious about the company's financial health and market position. According to InvestingPro data, Atlantica's market capitalization stands at $61.82 million, reflecting its current valuation in the market. The company's Price/Earnings (P/E) ratio is notably high at 170.4, suggesting that investors may be expecting higher earnings growth in the future compared to the company's current earnings.
One InvestingPro Tip that stands out is that Atlantica is expected to see net income growth this year, which could be a positive signal for investors looking for profitability. Furthermore, the company holds more cash than debt on its balance sheet, which is often a sign of financial stability and could be reassuring to investors amidst the acquisition process.
It's also noteworthy that Atlantica has experienced a strong return over the last month, with a 19.05% increase in price total return. This performance could indicate investor confidence in the company's prospects and the potential value of the acquisition by Energy Capital Partners.
For those interested in a more in-depth analysis, InvestingPro offers additional tips on Atlantica Sustainable Infrastructure plc. Currently, there are 10 more InvestingPro Tips available, which can provide investors with a comprehensive understanding of the company's financial metrics and market standing.
These insights, particularly the expected net income growth and the company's solid cash position, could be valuable for investors as they consider the implications of the acquisition on Atlantica's future performance and strategy.
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