It has been reported that TotalEnergies (TTE.US) has agreed to sell a partial stake in its North American solar assets to KKR & Co. (KKR.US). The transaction values the entire portfolio at $1.25 billion, including debt. The company stated on Monday that its energy division will sell half of a 1.4 GW asset portfolio to the U.S. private equity giant. Bank financing arrangements have been largely finalized, and upon completion of the transaction, TotalEnergies will receive $950 million in proceeds.
TotalEnergies has been seeking for months to divest stakes in its U.S. renewable energy assets. This move is part of its strategy to sell 50% equity in these projects after their completion, aiming to enhance returns on its green investments. The asset disposal will help the company reduce its debt, which had nearly doubled since the beginning of the year as of June, primarily due to declining oil prices.
TotalEnergies noted that the transaction with KKR & Co. involves six large-scale solar power facilities with a total capacity of 1.3 GW, along with 41 distributed generation facilities with a total capacity of 140 MW, primarily located in the United States.
