(Adds details, analyst comment)
April 1 (Reuters) - French infrastructure group Vinci said on Thursday it has agreed to buy the energy business of Spain’s ACS for about 4.9 billion euros ($5.75 billion) in cash, slightly lower than its offer price in October.
Vinci had made a non-binding offer to buy ACS’s industrial unit including its energy business for 5.2 billion euros in October. In its statement on Thursday, Vinci did not disclose why the deal was agreed at a lower price or whether it was still taking on all the assets it offered to buy in October.
Vinci could not be reached for comment.
The price agreed is based on an enterprise value of 4.2 billion euros and Vinci has committed to additional contingent payments of up 0.6 billion euros over a period of eight-and-a-half years, the French company said.
With the deal, Vinci aims to bolster its energy contracting business and develop renewables projects, it said.
Vinci and ACS will also form a 51%-49% joint venture to acquire mature renewables assets, the French company said.
The acquisition will be financed through Vinci’s available cash and credit lines and will not have a significant impact on its balance sheet, the company said.
The deal, expected to close at the end of 2021, would add to Vinci’s earnings from the first year after closing to the tune of mid- to high-single-digit range, it said.
Shares in Vinci were up 3% at 89.9 euros at 0919 GMT, while ACS shares were flat, having jumped 26% when the deal was first announced.
J.P. Morgan analysts said the transaction was in line with preliminary expectations despite a slightly different price and scope and they continue to see the deal as a strong strategic milestone for Vinci.
$1 = 0.8522 euros Reporting by Anait Miridzhanian; editing by Jason Neely and Susan Fenton