EDPR agrees with CTG on the first investment in minority stakes in wind farmsM2 Communications
ENP Newswire - 27 December 2012
Release date- 21122012 - Madrid - EDP Renovaveis S.A. entered today into an agreement with China Three Gorges International Company Limited, a fully owned subsidiary of China Three Gorges, to sell a 49% equity shareholding and 25% of the outstanding shareholders loans in EDP Renovaveis Portugal, S.A. for a total consideration of EUR359 million.
The transaction is subject to the customary regulatory approvals with closing expected to occur by the 1H13.
The transaction scope covers 615 MW in operation, with an average age of 6 years, as well as 29 MW ready-to-build, remunerated under a feed-in-tariff regime in accordance to Decree-Law 33-A/2005, article 4. During the last twelve months (Sep-11 through Sep-12), EDPR's EBITDA and Net Profit in Portugal amounted to EUR116 million and EUR43 million, respectively, while total net fixed assets amounted to EUR558 million as of Sep-12. EDPR will continue to fully consolidate the assets.
Based on the transaction price, the total implied enterprise value for 100% of EDPR PT assets amounts to EUR 1,011 million:
EUR513 million of equity value;
EUR478 million of shareholder loans and external debt (already including the expected capex amount for 29 MW ready-to-build);
EUR20 million related with minority equity stakes in four wind farms.
The implied EV/MW multiple of the transaction amounts to EUR1.57 million per MW. Furthermore since its inception, the Portuguese portfolio has already generated EUR528 million of operating cash-flow.
The agreement reached today is made in the context of the strategic partnership established in Dec-11 between EDPR's principal shareholder, EDP - Energias de Portugal, S.A. ('EDP'), and CTG, and gives continuity to the execution of EDPR's asset rotation strategy presented at the May-12 Investor Day as one of the core objectives of the company.
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