ContourGlobal buys Acciona's solar power assets in $1.19 billion deal

The logo of Spanish energy, construction and services conglomerate Acciona, is projected on a wall during company's annual shareholders meeting in Alcobendas, outside Madrid, May 10, 2016. REUTERS/Sergio Perez

LONDON (Reuters) - Britain’s ContourGlobal on Tuesday agreed to buy Acciona’s solar power plants in a deal worth 962 million euros ($1.19 billion).

ContourGlobal said it would finance the purchase, which includes five concentrated solar power plants in Spain, through a combination of project financing of around 635 million euros (560.8 million pounds) and cash on the balance sheet.

It said it will pay the Spanish engineering and renewable energy company 806 million euros and take on existing net debt of 156 million euros.

ContourGlobal expects the purchase to extend the average remaining contract life of its energy portfolio to 12 years from 11 years.

Reporting by Clara Denina; editing by Jason Neely