Capital Energy, a Spanish renewable energy company, is considering a sale of its business amid increasing investor appetite in the sector, according to people familiar with the matter.
(Bloomberg) — Capital Energy, a Spanish renewable energy company, is considering a sale of its business amid increasing investor appetite in the sector, according to people familiar with the matter.
The closely-held firm, which has a portfolio of about 35 gigawatts in wind and energy projects in Spain and Portugal, is working with an adviser to field preliminary interest from prospective buyers, the people said. It’s seeking more than $2 billion in a transaction, the people said, asking not to be identified because the matter is private.
The assets could attract other companies in the renewable energy sector as well as investment funds, the people said. Considerations are at an early stage, and Capital Energy could decide against pursuing a deal. The company has also weighed an initial public offering in the past, the people said.
“Capital Energy constantly explores all types of opportunities in the market together with several financial advisors,” it said in a statement. “Currently it hasn’t made any decision about a potential transaction.”
Capital Energy was founded by Spanish entrepreneur Jesus Martin Buezas in 2002 as a wind and solar energy developer in the Iberian peninsula, according to its website. It has since expanded to construction, production, storage, operation and supply. The company previously set foot in countries including Romania, India and the US but decided to let go of its international business in 2015 to focus on Europe.
Spanish renewable energy assets have in recent years attracted growing interest from local and global investors. Pontegadea, the family office of Inditex SA founder Amancio Ortega, agreed in July to buy a stake in a solar plant from Repsol SA. It also reached an agreement to acquire a stake in Enagas SA’s renewable unit. China Three Gorges Corp. has also been an active buyer of clean energy assets.
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