Spanish electric utility Iberdrola has entered into an agreement with Neoenergia to buy stakes that it doesn't own in Força Eólica do Brasil (FEB) 1 and 2 for a combined sum of nearly €98m.
The transaction will allow Iberdrola to claim total ownership in the two Brazilian companies.
Currently, Iberdrola has 50% stake in each of the two companies and the new deal means that it will be the sole controller of wind power facilities with a capacity of more than 288MW in the Brazilian states of Rio Grande do Norte and Bahia.
As the Spanish firm already holds a 39% stake in the Brazilian power company Neoenergia, the new takeover deal is unlikely to have any significant impact on its consolidated financial statements.
Post transaction, Iberdrola will be the owner of FEB 1’s five wind farms with a total installed capacity of 150MW and also of another five wind farms from FEB 2 of a combined capacity of 138MW.
The wind farms of FEB 1 include the September 2013 commissioned Calango I, IV and V, each of 30MW capacity, and the 2014 commissioned Caetité I and II, each of a 30MW capacity as well.
On the other hand, FEB 2’s wind farms are the 28MW Arizona I, 20MW Mel II, Calango II and III – each of a 30MW capacity and Caetité III, also of 30MW. All the five FEB 2 wind farms have been operating since 2013.
The acquisition of the remaining stakes of the two companies is subject to the approval from Brazilian antitrust authority (CADE) along with their financing banks – BNDES and Banco do Brasil.
Image: Calangos Natural Park in Brazil. Photo: courtesy of Iberdrola, S.A.