Sources say Exclusive-Enel, KKR are among the bidders for UK Cubico

Andres Gonzalez and Isla Bini

LONDON/NEW YORK (Reuters) – Italy’s Enel and private equity group KKR are among potential bidders for Britain-based Cubico Sustainable Investments, people with knowledge of the process said.

Two of Canada’s largest pension funds – the Montreal-based Public Sector Pension (PSP) Investment Board and the Ontario Teachers’ Pension Plan (OTPP) – were considering selling the renewable energy firm, which could be worth about $6 billion or so. More including debt, sources previously told Reuters.

Non-binding offers were made last week, three people familiar with the process said. In recent months, Bank of America and Canadian Imperial Bank of Commerce have been hired to conduct the sale, the first and fourth. The fourth person received interest from other funds in the process.

The four people asked not to be named because the proceedings are private.

KKR, Bank of America, Cubico, PSP, OTPP and Canadian Imperial Bank of Commerce declined to comment. An Enel spokesman declined to comment on “market rumours”.

Infrastructure investors and corporate utilities have attracted renewable energy developers and other service providers focused on energy transition in recent years. However, some of the excitement has been dampened by increased interest in artificial intelligence, particularly in the US electric power sector, and the return to power of Donald Trump, which has revived demand for fossil fuels, including gas, as an energy source.

The company was founded in In 2015, the two funds joined forces with Banco Santander SA to create Cubico, and later became equal owners in 2016 after buying a stake in the Spanish bank.

Cubico is an operator of 2.8 gigawatts (GW) of wind and solar farms and integrated solar power and transmission line technology operations in Europe, North and South America and Australia.

Earnings before interest, taxes, depreciation and amortization (EBITDA) were $625 million in 2023, compared with $783 million in revenue, according to the report.

(Reporting by Andres Gonzalez in London and Isla Bini in New York. Additional reporting by Francesca Landini. Editing by Anusha Sakowi and Sharon Singleton)