LONDON–(BUSINESS WIRE)–
First State Investments and KKR have entered into an agreement by which
Coriance, a French district heating company which is currently owned by
KKR’s infrastructure funds and a co-investor, will be acquired by First
State Investments managed infrastructure funds. The proposed transaction
is subject to customary approvals. No financial terms were disclosed.
Coriance operates a portfolio of 29 regulated district heating
concessions in France, under which it supplies heat to residential,
social and commercial buildings, and sells cogenerated electricity to
state-owned utility EDF. The company also provides energy services in
the heating sector.
Yves Lederer, CEO of Coriance, said: “We have really appreciated the
period working with KKR as our investor – the relationship between
shareholders and management was excellent. We have developed our
business considerably and have grown renewable energy production as a
percentage of our total energy production from 34% in 2012 to 60% in
2015. Our company is well placed to take advantage of increasing demand
in public tender processes for heating solutions based on renewable
energy. We look forward to taking the next step in our development
together with First State, whose profile and objectives fit perfectly
with those of Coriance as a business.”
Marcus Ayre, Partner, Infrastructure Investments at First State
Investments, said “We are delighted that Coriance will become First
State’s inaugural infrastructure investment in France. Coriance’s
position as a leading operator of sustainable, reliable district heating
network concessions with a strong positive environmental dimension is
especially attractive to us as a long-term investor. We look forward to
working closely with the Coriance management team and employees to
further develop the company.”
Jesus Olmos, Member & Global Co-Head of Infrastructure at KKR, said:
“KKR has built a strong track record of investing in infrastructure,
including in energy generation and supply. As a business owner, we have
strong and proven expertise in helping companies to adapt to changing
environmental trends and regulation, and that has been a key part of the
success at Coriance. Together with Coriance’s exceptional management
team, we are proud to have built a larger, more successful and more
sustainable company, which is well positioned to continue to deliver on
its strategic development plan together with First State Investments.”
RBC Capital Markets acted as financial adviser to KKR on this
transaction. KKR’s other advisers included Clifford Chance, Simpson
Thacher & Bartlett, KPMG, Poyry and Marsh.
Lazard Frères and DC Advisory acted as financial advisers to First State
Investments. First State Investments’ other advisers included Deloitte,
Allen & Overy, Watson Farley & Williams, Atkins, E-Cube and Willis
Towers Watson.
-Ends-
About KKR
KKR is a leading global investment firm that manages investments across
multiple asset classes including private equity, energy, infrastructure,
real estate, credit and hedge funds. KKR aims to generate attractive
investment returns by following a patient and disciplined investment
approach, employing world‐class people, and driving growth and value
creation at the asset level. KKR invests its own capital alongside its
partners’ capital and brings opportunities to others through its capital
markets business. References to KKR’s investments may include the
activities of its sponsored funds. For additional information about KKR
& Co. L.P. (NYSE:KKR), please visit KKR’s website at www.kkr.com and
on Twitter @KKR_Co.
About First State Investments
First State Investments is the consolidated asset management division of
Commonwealth Bank of Australia, the largest financial institution in
Australia and currently manages approximately €130 billion of
investments globally. First State is a leading manager of, and investor
in, infrastructure assets. With over twenty years’ experience in
infrastructure investment, it is one of the longest established managers
of infrastructure assets on behalf of institutional investors and
currently manages in excess of €4.8 billion of equity invested across
assets in the utility, transport and social infrastructure sectors in
Australasia and Europe.
About Coriance
Coriance’s activities are split between district heating and cooling
networks, electricity generation and energy services. Coriance operates
29 heating and cooling networks in France. 820MWth of thermal capacity
and installed electrical capacity of 120 MWe. The business is
underpinned by long term heat and power contracts signed with public
entities. Coriance is committed to renewable energy production, which
represents over 60% of the energy produced on the majority of its
networks. The Company continues to grow its share of renewable energy
production.
For additional information about Coriance, please visit Coriance’s
website at www.groupe-coriance.fr
View source version on businesswire.com: http://www.businesswire.com/news/home/20160620005466/en/
KKR – UK
Finsbury
Victor Mallet
Phone:
+44(0) 7471144140
Email: victor.mallet@finsbury.com
or
KKR
– France
Adding Value Conseils
Olivier Blain
Phone:
+33 (6) 72 28 29 20
Email: ob@addingvalueconseils.com
or
Coriance
Noisy-le-Grand
Muriel
de l’Ecotais
Phone: +33 (0)1 49 14 89 26
Email: muriel.delecotais@groupe-coriance.fr
or
First
State Investments
First State Investments
Una Clarke
Communications
Manager
Phone: +44 207 332 6520
Email: Una.clarke@firststate.co.uk
Source: KKR