TotalEnergies, a global multi-energy company, has announced a significant transaction in the renewable energy sector.
The company is selling a 50 percent stake in a 1.4 gigawatt solar portfolio in North America. The buyer is a group of insurance companies and clients managed by leading global investment firm KKR.
The transaction is an important part of TotalEnergies' integrated business model and values the entire portfolio at an enterprise value of USD 1.25 billion. Upon closing, TotalEnergies expects to receive total proceeds of USD 950 million from this transaction and from the currently finalized bank refinancing. The divested portfolio is extensive and comprises various plants, mainly in the USA. It includes six solar power plants with a total capacity of 1.3 gigawatts and 41 decentralized generation plants with a total capacity of 140 megawatts. The electricity generated by these projects has already been sold to third parties under existing contracts or is marketed by TotalEnergies itself in order to secure future sources of income.
TotalEnergies retains a 50% stake in the assets. The company will continue to be responsible for the operation of the portfolio after completion of the transaction, which is subject to customary closing conditions.
KKR views the partnership and acquisition of the North American solar portfolio as an excellent addition to its long-standing infrastructure platform, which has already committed more than $23 billion to investments in the energy transition, and notes the high quality of the assets and their long-term contracts.
