Enel, Endesa To Combine Renewables Activity in Spain, Portugal

European power companies Endesa SA (ELE.MC) and Enel SpA (ENEL.MI) are planning to pooling their renewable energy activities in Spain and Portugal under a single entity–Enel’s subsidiary EPG. The boards of the two companies have approved the arrangement.

Financial details were not disclosed.

Endesa currently develops renewables in Spain and Portugal through Endesa Cogeneracion y Renovables SL (ECYR), a unit of Endesa Generacion SA.

EGP through its subsidiary, Enel Green Power International BV, carries out renewable production in Spain and Portugal through its 50% stake in Enel Union Fenosa Renovables SA.

The consideration of the acquisition and the contributions to ECYR would be at fair value. The other companies involved in the transaction, Eufer and Ecyr, have been valued by independent investment banks, BBVA and Banco Santander (financial advisers of Endesa and EGP, respectively), which have issued the fairness opinions about the economic value of the respective companies for the boards of directors of both companies.

The resulting entity would have, once fully integrated, 1.4 gigawatts (GW) of operational attributable capacity and a diversified portfolio in several renewable energy technologies including wind, small hydro, photovoltaic, biomass, and combined heat and power.

Endesa will retain a presence in governing bodies of ECYR and will play a key role in the operational management of its sites, the management of the power produced and the management of relations with state, autonomous and local authorities.

Enel Green Power is currently preparing for and IPO on Italian and Spanish markets.

Website: http://www.endesa.es     
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