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bp has recently agreed to takeover the remaining 50.03% stake it didn't already own in Lightsource bp. The acquisition represents a base equity value of $322.5mn, with Enerdatics calculating the enterprise value for the acquired stake at $1.27bn.
The transaction will give bp 100% ownership to 2.9 GW of operational assets and ~10 GW of projects in construction and active development, primarily across US, Australia, UK and Spain. Additionally, lightsource bp has 55 GW of identified opportunities in its pipeline.
The acquisition represents an EBITDA multiple of 6.99, based on Lightsource bp’s 2022 EBITDA of $364.4mn. This represents the lowest EBITDA multiple for a billion-dollar corporate takeover of a solar platform, globally, since 2020.
Enerdatics observes that amid the current macroeconomic challenges including high interest rates and supply chain bottlenecks, the current deal represents a solid acquisition for bp, allowing it to expand its presence in key growth markets. Additionally, the investment aligns with bp’s target of generating 8-10% returns on onshore renewable projects.
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The above analysis is proprietary to Enerdatics’ energy analytics team, based on the current understanding of the available data. The information is subject to change and should not be taken to constitute professional advice or a recommendation.
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