Enel Green to sell Portuguese renewables arm to FSI for EUR 900m

Enel Green Power SpA (BIT:EGPW) has sealed a EUR-900-million (USD 1bn) deal to dispose of its entire Portuguese renewables business, focused on wind, to funds managed by First State Investments (FSI).

The Italian renewables developer said in a statement on Wednesday it has agreed to sell Finerge Gestao de Projectos Energeticos SA to Portugal-based First State Wind Energy Investments SA. The target has a portfolio of operating wind farms with a combined capacity of 126 MW and also holds minority stakes in an additional 292 MW. Moreover, Finerge has a 35.96% stake in Eolicas de Portugal SA, also known as the ENEOP consortium, which in turn owns a portfolio of 1,333 MW operating wind farms.

At present, the shareholders of ENEOP are splitting the assets held by the consortium, a move that will expand Finerge’s own portfolio by a further 445 MW, bringing it to a total of 863 MW, of which 642 MW will be net.

The sale of Finerge to FSI is seen to close in the final quarter of the year. The above-mentioned deal value takes into consideration the repayment of a shareholder loan to Finerge, Enel Green noted.

The divestment of the Portuguese business aligns with Enel Green’s strategy to optimise its portfolio and pursue opportunities in countries with greater development potential. The company expects to gain roughly EUR 30 million from the transaction, including the effects of ENEOP’s consolidation.

Last year, Finerge posted consolidated earnings before interest, tax, depreciation and amortisation (EBITDA) of about EUR 29 million on revenues of some EUR 38 million.

(EUR 1.0 = USD 1.123)

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