Albioma, a French renewables energy company, has confirmed media reports of holding preliminary talks with KKR over a possible takeover offer from the private equity firm.

According to Albioma, there is no certainty that the talks will succeed.

The company is engaged in developing solar energy, biomass, and geothermal energy projects in French-administered territories outside Europe, France metropolitan, Mauritius, and Brazil.

Last year, the company acquired its first geothermal energy power plant in Turkey. In February 2022, the company followed it up with the acquisition of an 18MW geothermal power plant in the same country.

According to Bloomberg, Albioma has a market value of around €1.2bn.

The publication, citing undisclosed sources, reported that the French firm could also draw interest from other private equity firms, infrastructure investors, as well as oil and gas firms that want to increase their exposure to renewables.

Last week, Albioma reported a 7% year-over-year growth in its net income for the full year 2021 at €59m. The company’s revenue for 2021 was €573.3m, a 13% increase from the revenue of 2020.

It is said to have a partnership for more than 25 years with the sugar industry for producing renewable energy from bagasse, which is a fibrous residue from sugar cane.

In late 2018, the company acquired Eneco France, a developer of photovoltaic power plants.