EDPR will also acquire Viesgo's renewable energy business that includes 24 wind farms and two mini hydro power plants
Portuguese energy company Energias de Portugal (EDP) has agreed to acquire Viesgo, a Spainish electricity company, from Macquarie Infrastructure and Real Assets.
As per the terms of the agreement, EDP has agreed to acquire a 75.1% stake in Viesgo’s electricity distribution units, Viesgo Distribución and Begasa from certain funds managed by Macquarie Infrastructure and Real Assets (MIRA).
MIRA will own the remaining 24.9% stake in those units of Viesgo, to which EDP will also contribute electricity distribution network E-Redes.
EDP, through its majorly owned subsidiary EDP Renováveis (EDPR) will acquire Viesgo’s renewable energy business that includes 24 wind farms and two mini hydro power plants (HPPs).
The plants are located throughout Spain and Portugal that represents a total of more than 500MW of installed net capacity, for an enterprise value of €565m ($644.9m).
At the same time, EDP will also acquire two thermal generation plants in the south of Spain from Viesgo.
The transaction is expected to be closed by the end of the year
EDP said: “The consideration of €565 million to be paid by EDPR to Viesgo for its renewables business implies an Enterprise Value multiple of €1.1 million per net MW.
“The Viesgo transaction implies a net equity investment by EDP of €0.9 billion and will result in EDP consolidating Viesgos’s existing net financial debt of €1.1 billion.
“MIRA will invest a total of €0.7 billion across debt and equity as part of the Viesgo transaction.”
Slated to close by the end of the year, the deal is subject to the satisfaction of all applicable conditions that include all relevant regulatory and governmental approvals, at EU and Spanish level.