Enel Green to pocket EUR 110m from geothermal JV exit

Dec 16, 2014 - Enel Green Power (BIT:EGPW) said today it expects to get some EUR 110 million (USD 137.4m) in net proceeds from the sale of its 36.2% stake in LaGeo -- a geothermal energy joint venture (JV) in El Salvador.

The Italian renewable energy firm said on Friday it signed the disposal deal with the majority owner of LaGeo - Inversiones Energeticas SA (INE). Enel Green will receive a consideration of some USD 280 million from the state-owned power company for the stake, which the seller estimates has a consolidated book value EUR 100 million.

The JV, in which INE already holds a 63.8% interest, operates two geothermal plants in El Salvador -- one of 95 MW in Ahuachapan and another of 109 MW in the Berlin municipality, according to Enel's website. With the sale of its LaGeo shareholding, Enel Green is closing its activities in El Salvador, the firm noted.

The seller and buyer have been in an eight-year dispute over the ownership structure of the JV. Before the disposal of the 36.2% stake could be concluded, all litigation against EGP and its representatives in El Salvador needs to be cancelled.

(EUR 1.0 = USD 1.249)

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