BP PLC (BP.LN) said Friday that it has agreed to invest $200 million for a 43% stake in solar-energy company Lightsource Renewable Holdings Ltd.
The oil-and-gas company will make the investment over three years to fund Lightsource's growth pipeline for the acquisition of large-scale solar projects. Lightsource Renewable will be rebranded Lightsource BP, and BP will have two seats on its board of directors.
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London-listed BP will pay $50 million on completion of the agreement, which is expected in early 2018, with the remainder of the investment to be paid in instalments over three years.
The deal will create opportunities to integrate solar energy alongside BP's alternative-energy business, it said.
Bob Dudley, chief executive at BP, said that the deal represents a shift in the multinational's approach to solar energy, as it moves away from manufacturing panels and toward developing and managing solar projects.
Lightsource currently has 2 gigawatts of energy capacity under management, of which 1.3 gigawatts was developed in-house. BP said that the company has a project pipeline of 6 gigawatts.
Shares in BP were down 0.30 pence, or 0.1%, at 503.70 pence at 0957 GMT.
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(END) Dow Jones Newswires
December 15, 2017 05:22 ET (10:22 GMT)