Iberdrola and German company MVV Energie AG, through its subsidiary MVV Windenergie GmbH, have concluded an agreement for MVV’s acquisition of IBERDROLA’s seven onshore wind farms located in Germany.
The transaction, subject to regulatory approvals, involves the transfer of a total 62.9 megawatts (MW) wind installed capacity.
IBERDROLA will transfer to utility Group MVV 100% of the shares of Iberdrola Renovables Deutschland, GmbH, owner and operator of four wind farms totaling 37.4 MW capacity, and 100% of the shares of Windpark Jülicher Land GmbH, which owns three wind farms with a joint capacity of 25.5 MW.
The contract also stipulates that MVV will assume the financial debt which both subsidiaries have with the IBERDROLA Group. The operation, comprising share purchase and intra-group debts, is valued at a total €52.7 million at the closing date plus an additional contingent payment of €10.1 million, subject to certain requirements common to this type of transaction.
This transaction is in line with IBERDROLA’s outlook for 2012-14 – presented in London last October – which contemplates divesting assets in non-core businesses and markets, for approximately €2 billion in the three-year period, to strengthen the Group’s balance sheet.
Divestments of approximately €350 million
Within the framework of its strategy of divesting non-core businesses for 2012-2014, IBERDROLA has sold non-core assets valued at around €350 million so far this year.
Previous transactions include the sale of US-based companies The Energy Network (owner of Hartford Steam) to Energetix and NYSEG Solutions to Direct Energy; all its gas distribution assets in Spain (Madrid, Murcia and Valencia region); its 13.25% stake in Gas Natural Mexico; most of its shares in telecommunications operator Euskaltel – where it still holds a 2% stake – and the sale of GH Electrotermia, a company participated jointly with BBVA through Corporación IBV.
IBERDROLA will continue in the coming months its divestment programme in coming months with the goal of reinforcing the Group’s financial strength, by reducing debt, improving financial ratios and maintaining its credit rating.