Iberwind, which is equally owned by CKI and PAH, will be purchased by onshore wind platform Ventient Energy
Hong Kong-based infrastructure company CK Infrastructure (CKI) and its associate company Power Assets Holdings (PAH) have agreed to divest Portuguese onshore wind power business Iberwind for $251.6m.
Iberwind, which was acquired by CKI and PAH in 2015, will be purchased by pan-European onshore wind platform Ventient Energy. CKI and Power Assets equally own Iberwind.
CKI chairman Victor Li said: “This transaction is a very rare move for CKI as trading assets is not our policy.”
Iberwind operates 31 onshore wind farms in Portugal
Iberwind operates 31 wind farms, with a combined power generation capacity of 726MW in Portugal.
Operating under a two-phase feed-in-tariff (FiT) regime, Iberwind has an initial 15-year fixed tariff followed by a seven-year cap and floor price protection.
Iberwind, effective from 2020, will transition out of the fixed tariff phase and will revert to merchant pool price from 2027.
Victor Li added: “The uniqueness of this Iberwind transaction lies in the different risk appetite with regards to future power pool prices.
“This unique scenario plus the stated intention of the buyer, Ventient Energy, to provide continuity of employment to the team at Iberwind prompted us to accept this unusual divestment.”
The transaction, which is subject to approvals including approval by the Portuguese competition authority, is planned to be completed in the fourth quarter of the year.
Proceeds from the sale will be used CKI and PAH to boost respective financial capabilities for new investment opportunities.
CKI chief planning and investment officer Ivan Chan said: “This transaction underscores well the hidden value of CKI’s assets.”