Korean group buying into 852 MW of US wind farms

A group of South Korean infrastructure investors has agreed to buy a 49.9% stake in an 852-MW portfolio of US wind farms in a deal with an implied aggregate enterprise value of USD 1.5 billion (EUR 1.26bn).

The consortium comprises power utility Electricity Power Corporation’s (KEPCO) subsidiary Korea Hydro & Nuclear Power Co, Alpha Asset Management, Sprott Korea Investment, Hana Financial Investment and Korea Investment & Securities. According to a joint press release on Tuesday, the partners have signed definitive agreements for the equity stake purchase from Brookfield Renewable and Chicago-based Invenergy LLC.

Following the acquisition, Brookfield will continue to hold a 50.1% interest.

The target portfolio consists of four wind parks, all of which operate under long-term power purchase agreements (PPAs) or hedges with investment-grade counterparties. General Electric (NYSE:GE) is servicing the plants. More details about each of them are available in the following table.

The deal is subject to customary closing conditions and is due to be finalised in the last quarter of this year. According to Alpha’s CEO Joonhyuk Choi, it is the largest renewable energy purchase to date by Korean investors.

CIBC Capital Markets served as the consortium’s financial advisor and Lee & Ko LLC and White & Case LLP provided legal counsel.

(USD 1.0 = EUR 0.839)

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