U.S. power utility company AES Corp said on Friday it would buy a privately-held company that builds utility-scale solar projects, along with Canadian pension fund manager Alberta Investment Management Corp (AIMCo), for US$853 million in cash.
The deal to buy FTP Power LLC, popularly known as sPower, from U.S. hedge fund Fir Tree Partners also includes US$724 million in debt.
The deal is expected to increase AES’s stake in renewable energy projects under construction by 15.4 percent to 9,552 megawatts (MW).
Salt Lake City, Utah-based sPower’s portfolio includes 1,274 MW of solar and wind projects in operation or under construction, with more than 10,000 MW being developed.
Update: AES and AIMCo will each directly purchase and own slightly below 50 percent equity interests in sPower, according to a statement issued by the company.
(Reporting by Muvija M in Bengaluru; Edited by Martina D’Couto)
(This story has been edited by Kirk Falconer, editor of PE Hub Canada)
Photo courtesy of sPower