KKR [NYSE: KKR] to Participate in Auction for 49% Stake in Red Electrica

KKR & Co. Inc. [NYSE: KKR] is going to take part in the auction for 49% holdings in the fiber-optic subsidiary of Spanish grid operator Red Electrica. Other firms which are anticipated to take part in the auctions are Axa which is a French multinational insurance firm and Allianz which is a German multinational financial services company.

The sources disclosed that the subsidiary, known as Reintel, could get between 1.2 billion euros and 1.3 billion euros ($1.4 billion-$1.5 billion). Presently, Reintel, which is owned by Red Electrica, runs a network of more than 50,000 km (31,068 miles) of fiber-optic cable laid along the electricity grid and rail network.

KKR has recorded a total market capitalization of $54.42 billion at the time of writing. In the past 52-weeks of the trading session, its shares fluctuated between the 52-week low range of $33.65 and a high range of $67.81. Its share surged 94.68% from its 52-week low and plunged -3.39% from its 52-week high.

KKR & Co. Inc. which has earned a reputation as private equity and real estate investment firm has not responded to the news of its participation in the auction of Red Electrica. KKR is a master in direct and fund of fund investments. It focuses on purchases, leveraged takeovers, management takeovers, credit special situations, etc.