Enel Sells half of Enel Green Power Hellas to Macquarie Asset Management for 350 Million

Double sale of assets in renewable sources by Enel around the New Year, aimed at reducing the group’s net financial debt by approximately 600 million euros . The first, dating back to 29 December, concerns the closing of the sale through Enel Green Power of 50% of the Greek renewable energy subsidiary, Enel Green Power Hellas, to the Macquarie Green Investment Group Renewable Energy Fund 2 fund of the Australian Macquarie Asset Management.

The operation was completed for approximately 350 million euros , equivalent to an overall enterprise value of approximately 980 million. The second, concluded last Thursday, refers to the completion of the sale by the 100% subsidiary Enel Green Power North America of a portfolio of renewable assets in the USA for 250 million to the American Ormat Technologies.

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The binding agreement relating to the Greek subsidiary was signed at the end of July 2023, and the news was anticipated in May.

The operation generated a positive impact on Enel’s 2023 EBITDA of approximately 400 million , including the valorization of the remaining stake at current value, as well as a reduction in the group’s net debt expected by approximately 350 million.

This amount, specifies the parent company, does not include approximately 400 million of net debt deconsolidated in 2022, as Enel Green Power Hellas had already been classified as “available for sale”.

The closing also included the creation of a joint venture that will jointly control Enel Green Power Hellas for the management of renewable energy in Greece. “Upon closing of the transaction, Enel Green Power and Macquarie Asset Management entered into a shareholder agreement which provides for joint control of Enel Green Power Hellas in order to co-manage the company’s current portfolio of generation from renewable sources and continue to develop its pipeline of projects, with a further increase in installed capacity,” reads the note.

Enel Green Power Hellas manages 59 plants equal to a total of 482 megawatts of installed capacity from wind, solar and hydroelectric sources, as well as six solar plants under construction, for a total capacity of 84 megawatts. The Hellenic company is also engaged in developing a portfolio of wind and solar plants, as well as expanding its activities into innovative solutions such as storage systems and hybrid projects.

Moving on to the most recent deal in the United States, the sale to Ormat Technologies involves Enel Green Power North America’s entire geothermal portfolio, as well as several small solar plants, for a total capacity of approximately 150 megawatts of operating plants. The binding agreement was signed last October. Enel expects that the operation will generate a positive effect on its net debt of approximately 250 million and a negative impact of approximately 30 million on the group’s reported net result, while it will have no impact on the consolidated ordinary economic results.

This sale does not change the profile of the Enel group in the United States in terms of consolidated renewable capacity, equal to over 8 gigawatts, confirming Enel Green Power North America as one of the largest producers of renewable energy in the region thanks to its core portfolio of technologies, he explains the note. Enel Green Power’s consolidated renewable capacity (solar, wind and hydro) following this transaction is approximately 9.7 gigawatts in the United States, Canada and Mexico.

Enel closed the first nine months of 2023 with net financial debt of 63.6 billion euros, up 5.4% compared to the same period of the previous year

The 2024-2026 divestment plan, partly redefined to focus on a portfolio rotation driven by the value of the assets, will produce a positive impact on net financial debt estimated at approximately 11.5 billion euros between 2023 and 2024 with a collection of around 8 billion , which is expected to be achieved this year.

Enel, together with its listed subsidiary Enel Chile , sold a portfolio of 416 megawatt photovoltaic plants in Chile for 525 million euros to the international renewable energy producer Sonnedix. In September it sold 50% of Enel Green Power Australia to Inpex Corporation for 142 million.

Enel’s disposals in 2023 totaled approximately 2.8 billion euros and concern the exit from Romania and the sale of generation activities in Argentina, in addition to the sale of 50% of the renewable activities in Australia and the sale of the solar portfolio in Chile.

There are also other operations for an expected amount of approximately 5.4 billion , such as the sale of generation assets and the divestment of distribution and supply assets in Peru. This amount also includes the sale of 50% of Enel Green Power Hellas and the sale of the solar and geothermal portfolio in the United States. Finally, there are operations in an advanced stage of negotiation, for an expected amount of around 3.3 billion (swaps and asset rotation, partnerships and asset rotation in the renewables business).

According to what was reported just over a month ago by Corriere della Sera , Enel is reportedly in negotiations with NextEnergy Capital , in pole position, and with the Swedish giant Ikea for the sale through Enel Green Power of 50% of the 3Sun plant in Catania, which last year it pocketed a loan of 560 million euros from UniCredit and from this year it should produce 3 gigawatts of high-efficiency photovoltaic modules per year.

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(Featured image by Coernl via Pixabay)

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