Spain's Endesa eyeing sale of 49% stake in 2-GW portfolio - report

Spanish utility Endesa SA (BME:ELE) is seeking to sell a minority stake in a 2,000-MW renewables portfolio to a strategic partner, media in Spain reported on Monday citing unnamed sources.

Spanish business news outlet Cinco Dias was the first to report that the utility engaged banks Banco Santander SA (BME:SAN) and Intesa Sanpaolo SpA (BIT:ISP) to work out a deal.

Endesa is open to selling up to a 49% stake in the portfolio, which the sources say is filled mainly with solar photovoltaic assets. The package will include both projects in development and assets in operation, with some power purchase agreements (PPAs) in it as well, Cinco Dias reports.

The portfolio is worth around EUR 2 billion (USD 214bn), according to initial valuations by the banks, Cinco Dias and news agency Europa Press have learned. Endesa has declined to respond to their requests for comment.

The company has 9,293 MW of installed renewable energy capacity in mainland Spain, according to its 2023 half-year earnings report. It operates as a utility in Spain and Portugal.

Endesa appears to be following the same sale strategy adopted by its peers Iberdrola SA (BME:IBE) and Repsol SA (BME:REP), and a smaller firm such as Grenergy Renovables SL (BME:GRE). Each of them opted to sell a 49% stake in their portfolios in exchange for proceeds for further project development and control of the assets.

One Spanish company that failed to sell a minority stake in its renewables business was Elecnor SA (BME:ENO). After an unsuccessful search for a buyer, Elecnor put a majority stake its renewables unit Enerfin on the table and reportedly attracted interest from China Three Gorges Corporation.

(EUR 1.0 = USD 1.07)

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