EGP sells Portuguese unit in a €900m deal

Italy’s Enel Green Power (EGP) has signed worth €900m ($1 bn) agreement with First State Wind Energy Investments for the sale of its Portuguese unit Finerge Gestão de Projectos Energéticos active in the renewable sector in Portugal.

Upon the completion of the transaction that includes the reimbursement of loans granted by Finerge, the Italian group will leave the Portuguese renewables market.

The exit is a part of EGP strategy to seize opportunities available in countries with greater growing potential.

EGP CEO Francesco Venturini said: "This disposal of our Portuguese assets is part of our active portfolio management strategy, a key pillar of the Group’s five year strategic plan.

"There is strong demand for renewable assets and by selling an operational platform in a mature market, we register an early success in delivering against the commitments we made to the market earlier this year."

The firm has been scouting for opportunities in particular Africa to expand, while Kenya, Tanzania, Uganda, Ethiopia and Namibia are next in the line.

It has about 1GW of wind farms in Latin America and finished its first 50MW wind farm in Uruguay in September.

Finerge has a portfolio of operating wind farms with a total capacity of 126MW to 292MW minority stakes.

It holds 35.96% equity interest in Eólicas de Portugal (ENEOP) , a company that owns 1333MW operative wind farms.

After the completion of transaction, Finerge will become the sole owner of four special purpose companies with total installed capacity of 445 MW.

At the finish of deal it will only have a Portugal wind farm with a net installed capacity of 863MW, equivalent to 642MW capacity.