AY - Atlantica Sustainable: What To Expect When You Are Expecting A Buyout

2024-05-09 07:47:27 ET

Summary

• Bloomberg reports advanced talks of a potential acquisition of Atlantica Sustainable, sparking speculation about the offer price.
• AY faced a decline in CAFD and renewable energy production in early 2024, but secured a 15-year PPA for a solar + storage project in California, and acquired wind assets.
• The article discusses the potential buyout price based on past M&A transactions in the energy sector, the strategic interest of major stakeholders, and the implications of management bonuses and incentives.

Atlantica Sustainable Infrastructure ( AY ) has done well since our last article , where we pointed out that they looked like a bargain trading with cash available for distribution (CAFD) yield of over 10%, most of which was being returned to shareholders via dividends. Since then, shares have significantly outperformed the S&P 500 index ( SPY ) on a total return basis....

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