March 25 (Renewables Now) - Iberdrola SA (BME:IBE) is looking to sell a stake of around 40% in the 350-MW Wikinger offshore wind farm in the Baltic Sea, Spanish business newspaper Expansion has reported citing sources close to the transaction.
The asking price is said to be over EUR 1 billion (USD 1.08bn), the sources say, and the Spanish utility group has hired JPMorgan Chase & Co (NYSE:JPM) to sound out investor interest.
Large pension, infrastructure and sovereign funds are being probed in search of financial partners that are not interested in exerting influence on the wind farm management and are looking for assets with long-term and stable returns, Expansion writes.
Iberdrola intended to close the transaction before summer and wanted to start receiving first non-binding offers at the end of March. However, some investment banks that are working with potential interested parties say that the process would need to be delayed in light of the coronavirus crisis.
While the current recession could do little to change Wikinger's valuation, potential buyers could face problems finding attractive financing at this time, according to Expansion.
A spokesperson for Iberdrola declined to comment on Expansion’s report.
Located off the German island of Ruegen, the Wikinger wind farm was commissioned in 2018. Iberdrola invested EUR 1.4 billion in the project.
(EUR 1.0 = USD 1.08)