Enel Green Power International (EGPI) has signed and executed an agreement to divest 60% stake in Enel Green Power España (EGPE) to Endesa Generación, a unit of Endesa, for €1.2bn.

Endesa Generación already holds 40% stake in EGPE, which operates directly or indirectly through subsidiaries in the generation of renewable electricity in Spain.

The sale is part of Enel’s plans to rationalize and simplify its structure in the various countries.

Endesa expects the acquisition of remaining 60% stake in EGPE to expand its presence in the renewables sector in the Iberian Peninsula.

With the completion of the acquisition, Enel Green Power España will be operated by Endesa Generación and be renamed as Endesa Renovables.

EGPE currently has 93 wind, hydraulic, solar and biomass power projects which have a combined capacity of 1.7GW and a production of 3,900GWh.

Enel said the transaction will not have an impact on the group’s consolidated financial statements.

In 2015, Enel Green Power (EGP) subsidiary EGPE agreed to sell the entire stake in Finerge Gestão de Projectos Energéticos (Finerge) to Portuguese company First State Wind Energy Investments for about $1bn.

First State Wind Energy Investments is a Portuguese company owned by global asset manager First State Investments.

Image: Enel Green Power España 1.7GW of wind, hydraulic, solar and biomass power projects. Photo: courtesy of dan/ FreeDigitalPhotos.net.