EDP Renewables, SA («EDPR»), a global leader in the renewable energy sector and one of the largest wind energy producers in the world, has signed a Sale and Purchase Agreement worth a total of 426 million euros with Finerge S.A., one of Portugal’s largest renewable energy producers, for practically the entire stake owned by EDPR – as well as the outstanding shareholder loans – in a portfolio of operational onshore wind farms with installed capacity of 242 MW.
Through the transaction, EDPR has completed the divestment of seven onshore wind farms located in Ávila and Catalonia. The assets in question have been operational for an average of nine years.
Based on the transaction price and the value of the net outstanding debt, the value of these assets stands at around 507 million euros. The implied enterprise value therefore amounts to 2.1 million euros/MW.
Through this agreement, EDPR has now completed the divestment of 40% of the 4 billion euros planned over the 2019-2022 period, as announced by the company in its updated Strategic Plan on 12 March 2019.
Divesting majority stakes in projects which are operational or in the development phase allows EDPR to step up value creation, and the capital generated is reinvested in accretive growth.
Rui Teixeira, Interim CEO of EDP Renewables, said: “This agreement is a major milestone for us. Not only does it show that we are able to generate value through project development and management, it also demonstrates that the market recognises the quality of our assets. This transaction allows us to continue to roll out our Business Plan thanks to an asset rotation strategy that allows us to monetise our assets before they reach the end of their useful lives, always with a view to stepping up investment, and by extension, growth.”
The transaction is subject to regulatory conditions and other conditions precedent and is expected to be completed in the fourth quarter of 2020.