A preferred bidder for the sale of up to 100% of French renewables IPP Arkolia is expected to be selected soon, with Mirova said by sources to be a well-placed bidder in this process.

Mirova and one other undisclosed investor have been described by the sources familiar as “serious” bidders and in the final-stage discussions for the deal, which was launched in the first quarter of this year with BNP Paribas and Nomura Greentech as sell-side advisors.

One of the sources said that Mirova is close to securing exclusivity, while a second source said that at least one other bidder is still in the picture.

The process attracted initial interest at the NBO stage in the previous quarter from a mix of financial sponsors including institutional investors and infrastructure fund managers.

However, some of the smaller buyers were said to have been deterred by the size of the business, which has an EBITDA of EUR 35m and debt in the region of EUR 500m, as reported.

Also, according to the sources, the existing top management is planning to leave the company right after the financial close of the deal so a new, experienced management needs to be in place right after the sale.

Arkolia, which is headquartered in Mudaison near Montpellier in southern France, focuses on solar PV, onshore wind and biogas projects, with 720 MW of assets in operation or under construction and a further 1.7 GW under development.

Launched in 2009 by Jean-Sebastien Bessiere and Laurent Bohomme, Arkolia posted revenues of EUR 190m last year, compared with EUR 130m the year before.

Back in 2018, Arkolia raised EUR 15m of equity from a mix of investors including Bpifrance, Societe Generale Capital Partenaires, and investment firms Irdi-Soridec Gestion and Soper to accelerate its development.

According to the company’s website, other shareholders also include investment firm HPC and Alain Planchot, the CEO of French biogas group Evergaz.

Last year, the renewable energy developer raised EUR 120m of debt to finance the development of a 100 MW solar portfolio, part of a larger 250 MW solar financing programme backed by French bank Caisse d’Epargne CEPAC.

Arkolia was also among the main winners in France’s onshore wind auction in February.

Mirova declined to comment. Arkolia did not respond to requests for comment.

Mirova’s investments in French renewable and energy transition companies include stakes in solar developers Corsica Sole and Girasole Energies, which have been among the winners of France’s latest solar PV tenders.