Atlantica Sustainable Infrastructure's stock falls on $2.6 billion buyout deal that's below recent trading price

By Steve Gelsi

Renewable-energy-portfolio company to go private for $22 a share, below stock's Friday closing price of $23.42

Atlantica Sustainable Infrastructure Plc's stock fell 5.5% on Tuesday after the renewable-energy-portfolio company agreed to go private at a price below its recent trading level.

Atlantica Sustainable (AY) said it agreed to sell itself to New Jersey-based private-equity firm Energy Capital Partners for $22 a share in a deal valued at about $2.56 billion.

The stock's price fell by $1.30 to $22.12 on Tuesday morning. About nine million shares have changed hands, which is more than six times its usual full-day trading volume of 1.4 million shares.

Atlantica said the purchase price of $22 a share is an 18.9% premium over its closing price on April 22, the last day before market rumors surfaced about a deal.

Algonquin Power & Utilities Corp. (AQN) and subsidiary Liberty (AY Holdings), B.V., which hold about 42.2% of Atlantica's shares, are supporting the deal.

Atlantica Chairman Michael D. Woollcombes said the merger deal comes after a "thorough and comprehensive strategic review process."

The deal is expected to close in the fourth quarter of 2024 or early in the first quarter of 2025.

-Steve Gelsi

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05-28-24 1030ET

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