Galp, ACS formalise JV for 2.9-GW Spanish solar portfolio
Solar panels. Author: 100% Campaign.
Portuguese oil-and-gas major Galp Energia SGPS SA (ELI:GALP) has concluded the formation of a joint venture (JV) with ACS Actividades de Construccion y Servicios SA (BME:ACS) to develop a 2.9-GW solar portfolio in Spain.
The JV will have Galp as its majority shareholder with a 75.01% interest while ACS will retain the remaining 24.99%. The Portuguese company paid EUR 326 million (USD 386.3m) for the stake and to cover development costs, it announced on Tuesday.
The portfolio in question contains 914 MW of operational plants spread across Spain. The assets within the remaining pipeline are currently in different stages of development and are planned to become operational by 2023, according to a previous announcement. ACS' unit Cobra Instalaciones y Servicios SA will develop and build the solar parks.
With EUR 434 million of non-recourse debt linked to the operating solar assets under the JV, Galp and ACS intend to project finance the remaining developments. Taking into account the acquisition, development and construction of the entire portfolio, the transaction reaches an enterprise value of EUR 2.2 billion, Galp noted.