Talks held for months between Acciona Energía and Singapore's The Blue Circle have resulted in the Spanish company acquiring a significant stake in the Asian company, thus entering the renewables market in Southeast Asia.
Acciona Energía invested 34 million dollars to acquire a stake of close to 50% of the capital, making it the largest shareholder. The Acciona subsidiary has also committed to contribute US$113.5 million to finance new projects as soon as they are ready for construction.
The Blue Circle has 84 MW of wind power in operation in Vietnam, in which it has a 50% stake, and more than 1.4 GW in an advanced stage of development in the region. The total project portfolio totals 3.8 GW in Vietnam, Thailand, the Philippines, Cambodia, Indonesia, Laos and Sri Lanka.
Acciona Energía's CEO, Rafael Mateo, said in a statement that "the agreement presents important synergies and opens up a new growth opportunity with an established leader in the region". This new offensive comes after significant investments in Australia.
The founder remains
The Singapore-acquired firm began operating in the Vietnamese wind market in 2017, although it has been developing projects in Southeast Asia since 2013. Its president, Olivier Duguet, highlights the nearly 95,000 hectares of land already secured to implement renewable projects. "Joining forces with Acciona Energia just at the inflection point of renewables deployment in the region will allow The Blue Circle to address the tremendous growth ahead," said Duguet.
The chief executive, the company's founder, and other minority shareholders will maintain a majority stake in The Blue Circle. In fact, Olivier Duguet will continue as CEO of The Blue Circle, which has offices in Singapore, Ho Chi Minh City (Vietnam), Bangkok (Thailand), Nom Pen (Cambodia) and Manila (Philippines).
With this transaction, Acciona Energía expands its portfolio of projects under development and its geographic diversification and accelerates its goal of reaching 20GW of installed capacity by 2025.
Astris Finance and Asia Counsel have acted respectively as financial and legal advisor to The Blue Circle. Baker McKenzie acted as legal advisor to Aciona Energía in this transaction.