Spanish power utility Iberdrola has agreed to divest its solar thermal power asset located in the town of Puertollano, Ciudad Real (Spain) by selling it to pulp and renewable biomass energy producer Ence Energía, S.L.U. The transaction involves the sale of 90% of the shares in Iberdrola Energía Solar de Puertollano, S.A., the company which owns the 50-megawatt (MW) solar thermal generation unit.
The transaction amounts to €181.1 million, of which €72.3 million correspond to the sale of Iberdrola Energía Solar de Puertollano, S.A. The remainder comprises the assignment to ENCE of the participating loan granted by Iberdrola to the company holding the shares, plus outstanding accrued interest.
In addition, payment of a €6.3 million earn-out has been agreed.Thus, Iberdrola maintains its clean energy focus through wind, hydroelectric and solar photovoltaic technologies.The deal will have a positive impact in the 2018 consolidated results of the Iberdrola group, which will be quantified at the closing of the transaction.
Also, both companies have reached an agreement whereby Iberdrola will operate and maintain the plant for two years. The sale is conditional on the partner holding the remaining 10% at Iberdrola Energía Solar de Puertollano, S.A., namely the Instituto para la Diversificación y Ahorro de la Energía (IDAE), waiving its right to preferential acquisition of the shares being transferred.
The divestment of this asset in Spain is part of the €3 billion asset rotation plan announced by Iberdrola at last February’s presentation of its Strategic Outlook for 2018-2022.The transaction is in addition to the recent divestment of its conventional generation assets in the United Kingdom, the sale of its gas storage business in the United States, as well as its minority stake in Tirme in Spain. The total amount of these transactions is close to €1.2 billion euros in 2018.
Source: Press Release by Iberdrola. Photo credit: © Iberdrola. Puertollano Solar Thermal Power Plant.