Skip to main content

A tower belonging to the Abengoa Solar plant is seen at ‘Solucar’ solar park in Sanlucar la Mayor, near the Andalusian capital of Seville, southern Spain, January 26, 2016.

MARCELO DEL POZO/REUTERS

Brookfield Asset Management Inc. is in advanced talks to buy the 41.5-per-cent stake in Atlantica Yield PLC held by Abengoa SA as the beleaguered Spanish solar-energy company seeks to cut debt, according to people familiar with the matter.

Brookfield's clean-energy unit, Brookfield Renewable Partners LP, and Abengoa could reach an agreement within weeks, the people said, asking not to be identified because the deliberations are private. No final decisions have been made and other bidders also remain interested in the stake, the people said.

Representatives for Abengoa and Brookfield, Canada's largest alternative asset manager, declined to comment. A representative for Atlantica Yield didn't immediately respond to a request for comment.

Story continues below advertisement

Atlantica Yield's shares climbed as much as 5.1 per cent, the steepest gain since July.

Brookfield this year agreed to acquire all of TerraForm Global Inc. and a controlling stake in TerraForm Power Inc., bankrupt SunEdison Inc.'s two yieldcos that would come with almost four gigawatts of wind and solar.

Abengoa, which last year faced becoming Spain's largest insolvency, may suffer new financial pressures after losing a court case brought by disgruntled creditors. The Seville-based company filed for preliminary creditor protection in 2015 after failing to raise capital and struggling under debt built up through years of overseas expansion. Following the restructuring, a group including Elliott Management Corp., Centerbridge Partners and Varde Partners became its largest shareholder.

Atlantica Yield is considered a yieldco, created to buy and operate power plants and provide capital for the developer to build new projects.

Report an error
Tickers mentioned in this story
Unchecking box will stop auto data updates
Comments

Welcome to The Globe and Mail’s comment community. This is a space where subscribers can engage with each other and Globe staff. Non-subscribers can read and sort comments but will not be able to engage with them in any way. Click here to subscribe.

If you would like to write a letter to the editor, please forward it to letters@globeandmail.com. Readers can also interact with The Globe on Facebook and Twitter .

Welcome to The Globe and Mail’s comment community. This is a space where subscribers can engage with each other and Globe staff. Non-subscribers can read and sort comments but will not be able to engage with them in any way. Click here to subscribe.

If you would like to write a letter to the editor, please forward it to letters@globeandmail.com. Readers can also interact with The Globe on Facebook and Twitter .

Welcome to The Globe and Mail’s comment community. This is a space where subscribers can engage with each other and Globe staff.

We aim to create a safe and valuable space for discussion and debate. That means:

  • Treat others as you wish to be treated
  • Criticize ideas, not people
  • Stay on topic
  • Avoid the use of toxic and offensive language
  • Flag bad behaviour

Comments that violate our community guidelines will be removed.

If your comment doesn't appear immediately it has been sent to a member of our moderation team for review

Read our community guidelines here

Discussion loading ...

Due to technical reasons, we have temporarily removed commenting from our articles. We hope to have this fixed soon. Thank you for your patience. If you are looking to give feedback on our new site, please send it along to feedback@globeandmail.com. If you want to write a letter to the editor, please forward to letters@globeandmail.com.