April 24 (Renewables Now) - EDP Renovaveis SA (ELI:EDPR), part of EDP - Energias de Portugal SA (ELI:EDP), has signed a deal to sell its interest in a 997-MW European wind portfolio to institutional investors advised by JP Morgan Asset Management.
The value of the deal, which covers EDPR's full equity shareholding and outstanding shareholder loans in the portfolio, amounts to EUR 800 million (USD 897.8m), subject to customary closing adjustments.
The transaction concerns 388 MW of French wind farms as well as 348 MW in Spain, 191 MW in Portugal and 71 MW in Belgium. These farms have been in operation for seven years on average, the company stated. EDPR currently has 51% stakes in most of the plants, which translates into a total net capacity of 491 MW. The total implied enterprise value for 100% of the assets stands at EUR 1.6 billion.
The completion of this transaction, which is subject to regulatory and other precedent conditions, is expected in the second quarter of the year. The sale aligns with EDP's EUR-4-billion asset rotation programme for the period 2019‐2022 and enables it to recycle capital and speed up growth in renewables, as well as to beef up its balance sheet, it said in a statement.
Following the sale, EDPR will deliver operating and maintenance services to the divested wind farms.
(EUR 1 = USD 1.12)