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BRIEF-Abengoa to sell 25 pct of Atlantica Yield with capital gain of about 96 mln euros
November 2, 2017 / 6:12 AM / 17 days ago

BRIEF-Abengoa to sell 25 pct of Atlantica Yield with capital gain of about 96 mln euros

Nov 2 (Reuters) - ABENGOA SA:

* SAID ON WEDNESDAY IT HAD ENTERED INTO A DEAL WITH ALGONQUIN POWER & UTILITIES CORP FOR THE SALE OF A 25 PERCENT STAKE IN ATLANTICA YIELD (AY)

* THE AGREED PURCHASE PRICE OF $24.25 PER SHARE IS SUBJECT TO CERTAIN DEDUCTIONS INCLUDED IN THE AGREEMENT AS WELL AS TRANSACTION COSTS

* THE CAPITAL GAIN WILL BE EFFECTIVE UPON CLOSING THE TRANSACTION, WITH AN ESTIMATED AMOUNT OF ABOUT 96 MILLION EUROS

* THE PARTIES ALSO AGREED AN EARN-OUT MECHANISM BY WHICH ABENGOA WILL BENEFIT FROM 30 PERCENT OF THE FIRST $2.00 OF ATLANTICA YIELD‘S SHARE PRICE REVALUATION, IMPLYING A MAXIMUM ADDITIONAL AMOUNT OF $0.60 PER SHARE

* THE EARN-OUT STRUCTURE WILL BE TRIGGERED ON THE FIRST ANNIVERSARY OF THE CLOSING OF THE TRANSACTION

* ABENGOA ALSO GRANTED THE PURCHASER AN OPTION TO ACQUIRE THE REMAINING 16.5 PERCENT OF THE COMPANY‘S STAKE IN AY UNDER THE SAME CONDITIONS AND AT THE SAME PRICE AND A RIGHT OF FIRST REFUSAL TO BE EXERCISED DURING THE FIRST QUARTER OF 2018

* ABENGOA AND ALGONQUIN ENTERED INTO A MEMORANDUM OF UNDERSTANDING TO JOINTLY INCORPORATE A GLOBAL UTILITY INFRASTRUCTURE COMPANY

Source text for Eikon:

Further company coverage: (Gdynia Newsroom)

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