Spain's Grenergy shares jump after $962 mln Chile assets sale to KKR

Shares in Grenergy GRE jumped as much as 28% on Wednesday morning after the Spanish renewable energy company struck a deal to sell an asset portfolio in Chile to ContourGlobal, a KKR company KKR, for an enterprise value of $962 million.

"The sale will reduce leverage, unlock value that the market was not recognising and free up capital to accelerate the investment plan," analyst Eduardo Inmedio from brokerage Renta 4 said in a note to investors.

Grenergy shares were up 19% in mid-morning trade, partly recovering from a 28% decline since early November when the company reported a 91% drop in nine-month net profit.

The deal with KKR includes $50 million based on the achievement of certain milestones and debt of $643 million, Grenergy said in a filing to the Spanish stock market regulator late on Tuesday.

The assets represent 23% of Oasis de Atacama, the largest electricity storage project in the world with a capacity of nearly 11 gigawatt hours, and solar energy generation projects with a potential capacity of 2 gigawatts.

The deal is expected to be completed in the coming days, Grenergy said.