Renewable Energy Firm Cubico Attracts Big-Name Bidders
Italy’s Enel and KKR Lead the Charge
In a significant development, Italy’s Enel and private equity giant KKR are among the top contenders vying for control of Britain-based Cubico Sustainable Investments. This move comes as two of Canada’s largest pension funds, the Public Sector Pension (PSP) Investment Board and the Ontario Teachers’ Pension Plan (OTPP), consider selling the renewable energy company, which could fetch a staggering $6 billion or more, including debt.
A Hotly Contested Sale
Non-binding offers were submitted last week, with multiple sources confirming the intense interest in Cubico. Bank of America and Canadian Imperial Bank of Commerce were appointed to manage the sale process, which has drawn in other prominent funds. The sale has sparked significant attention, with all parties involved maintaining confidentiality due to the private nature of the process.
Why Renewable Energy Remains a Hot Ticket
Despite some waning enthusiasm in the US, driven by soaring electricity demand for artificial intelligence and a renewed focus on fossil fuels, infrastructure investors and corporate utilities continue to be drawn to renewable power developers and service providers focused on the energy transition. This interest is fueled by the growing need for sustainable energy solutions.
Cubico’s Impressive Portfolio
Formed in 2015, Cubico operates an extensive network of wind and solar farms across Europe, North and South America, and Australia. The company also boasts concentrated solar power and transmission line technology operations, with a capacity of 2.8 gigawatts (GW). In 2023, Cubico reported earnings before interest, tax, depreciation, and amortization (EBITDA) of $625 million, with revenue reaching $783 million.
A Strategic Acquisition Opportunity
The potential sale of Cubico presents a unique opportunity for investors to tap into the growing renewable energy market. As the world continues to shift towards sustainable energy solutions, companies like Cubico are poised to play a critical role in driving this transition. With its impressive portfolio and strong financial performance, Cubico is an attractive target for investors seeking to capitalize on the renewable energy boom.
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