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Eneco could initiate sale process this summer - report

Eneco's Delfzijl Noord wind farm in the Netherlands. Source: Eneco (www.enecogroup.com).

February 9 (Renewables Now) - The 53 municipal governments that own Dutch power utility Eneco prefer an outright sale of the company to a sector player over a floatation, two banking sources have told Reuters.

The topic has been discussed since the owners voted in October 2017 to privatise the company. At the time, a decision on how to achieve the objective was not announced.

According to Reuters’ sources, the shareholders have now decided to pursue an outright sale, with a possible start of the process this summer. A company spokesperson told the news agency that the management and owners are trying to resolve differences. The insiders estimate the company’s value at up to EUR 4 billion (USD 4.9bn).

The article mentions France’s Total SA (EPA:FP) and Engie SA (EPA:ENGI), as well as Italy’s Enel SpA (BIT:ENEL) and Austrian energy group Verbund AG (VIE:VER) as potential bidders. Last month, Reuters reported that Royal Dutch Shell (AMS:RDSA) could opt for a bid as well.

Eneco's portfolio includes about 1,700 MW of available onshore and offshore wind power capacity, 142 MW of bioenergy and 76 MW of solar. Roughly 25% of its total supply comes from sustainable energy production, according to information on the company's website.

Just recently, the company cut in half its 20% stake in the Borssele III & IV offshore wind projects in the Dutch North Sea totalling 731.5 MW, and now holds a 10% interest.

(EUR 1.0 = USD 1.225)

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Ivan is the mergers and acquisitions expert in Renewables Now with a passion for big deals and ambitious capacity plans.

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