December 29 (SeeNews) - EDP Renovaveis (ELI:EDPR) announced on Monday it is selling a 49% interest in a 598-MW wind portfolio in Poland and Italy to subsidiaries of China Three Gorges Corp (CTG).
The portfolio consist of 392 MW of operational wind farms in Poland, 100 MW more in Italy and 107 MW under construction in both countries.
The agreement calls for CTG's indirect wholly-owned units, ACE Poland SARL and ACE Italy SARL, to pay a total consideration of EUR 392 million (USD 430m) for the plants and projects. The deal was sealed in the context of the EUR-2-billion strategic partnership established by EDPR’s principal shareholder, EDP - Energias de Portugal SA (ELI:EDP), and CTG in December 2011.
According to EDPR, the total implied enterprise value for 100% of the assets reaches EUR 1.04 billion, or EUR 1.74 million per MW. The amount takes into consideration EUR 800 million of equity value and shareholder loans plus EUR 240 million of external debt.
The transaction is pending regulatory clearance and is expected to be completed during the first half of 2016.
(EUR 1.0 = USD 1.097)