First Reserve Corporation will invest €300 million (US$400 million) in Abengoa’s Class B shares in a deal that endorses the company’s plans and management. First Reserve will be a strategic partner that will also strengthen Abengoa’s financial capacity.
First Reserve is a leading private investment firms in the energy sector, with more than 28 years of experience and more than $23 billion of raised capital and investments in more than 100 energy companies.
The agreement involves the issuance, and subscription by First Reserve of 17,142,858 new Abengoa’s Class B shares, which will not be listed, at €17.5 per share. The Class B shares, which will have a nominal value of €0.01 per share, have the same economic rights as Abengoa’s A shares, which have a nominal value of €1 per share, and voting rights equivalent to their nominal value, meaning 1/100 of the rights of A shares.
First Reserve is committed to holding its position in Abengoa for two and a half years treating it as a strategic investment, strengthening Abengoa’s capital and helping it to develop its current strategic plan.
Abengoa will also issue 4,020,124 warrants for Class B shares with an exercise price of €0.01, which will grant First Reserve the right to acquire additional Abengoa shares and a right to receive an amount equivalent to dividends paid per share over a five year period.
First Reserve will propose the appointment of a new member to the company’s Board of Directors.
Abengoa is an international company that applies technology solutions in the energy and environment sectors, generating electricity from the sun, producing biofuels, desalinating sea water and recycling industrial waste.