EDPR to fully divest 997 MW wind portfolio in Europe

EDP Renewables (EDPR), a global leader in the renewable energy sector and one of the largest wind energy producers in the world, signed a Sale and Purchase Agreement with  institutional investors to sell EDPR’s full equity shareholding and outstanding shareholder loans in an operating onshore wind portfolio with 997 MW of installed capacity, for a total consideration of approximately €800 million (subject to customary adjustments until closing). EDPR was advised by J. P. Morgan Asset Management (JP Morgan).

A Master Services Agreement has also been executed pursuant to which EDPR will provide operating and maintenance services to the above mentioned portfolio.

In detail, the transaction scope covers 388 MW in operation in France, 348 MW in operation in Spain, 191 MW in operation in Portugal (part of ex-ENEOP assets) and 71 MW in operation in Belgium. The total portfolio has been in operation for 7 years on average. EDPR had already previously sold minority stakes in these wind farms in 2013, 2014 and 2016, and with this agreement is fully exiting ownership of these projects.

Based on the transaction price and the outstanding external net debt, the total implied enterprise value for 100% of the assets amounts to €1.6 billion, which translates to an implied enterprise value multiple of €1.6 million/MW. The transaction is subject to regulatory and other precedent conditions and is expected to be completed in the second quarter of 2019.

The asset rotation deal announced today is part of the asset rotation program for 2019-22 period contemplated in the Strategic update announced on March 12, 2019.

The sale of majority stakes in projects in operation or under development, while continuing to provide operating and maintenance services, allows EDPR to accelerate value creation and book up-front profits, while recycling capital to reinvest in accretive growth.