The First Reserve Corporation will invest €300 million in Abengoa, a Spanish technology solutions company that focuses on the energy and environmental sectors, to form a strategic partnership, the firm said in a statement. First Reserve will purchase around 17 million of Abengoa’s Class B shares at €17.5 per share.
Abengoa will also issue warrants for an additional 4 million Class B shares at a price of €0.01, which First Reserve can acquire over a five year period. The firm will receive rights to an equivalent of dividends per share over that period. The firm’s investment will be used to strengthen Abengoa’s capital structure and assist the business in its expansion.
In addition to the shares, First Reserve will add a new member to the company’s board of directors, according to the statement.
Details regarding financing for the deal were not released. First Reserve could not be reached for comment at press time.
Abengoa applies technology solutions to sustainable development in the energy and environmental sectors, with a focus on solar energy, biofuels, desalination and industrial recycling.
First Reserve typically targets global energy companies with enterprise values of up to $10 billion and manages approximately $23 billion in raised capital and investments. In May, the firm closed its debut energy infrastructure fund on $1.2 billion.