By Joe Hoppe
ContourGlobal PLC said Thursday that it has sold its majority-owned hydro-electric generation subsidiary in Brazil for 1.73 billion Brazilian reais ($318.1 million), netting proceeds of around $110 million.
The FTSE 250 power-generation company said it sold Kani Lux Holdings S.a r.l., including the assumption of debt and other customary adjustments, to Patria Investments Ltd. The sale is expected to be complete in the second quarter, with an exclusive commitment that Kani’s wind assets can also be sold to Patria in the first half of 2022.
The company said the sale of the subsidiary–which it holds a 71.4% stake in–represents the first step in unlocking value for shareholders and closing the gap between its share price and the intrinsic value of its assets. It will decide whether to reinvest the proceeds into new growth opportunities or return capital to shareholders when the transaction…