Establishment of a MoU with CTG to sell a minority stake in ENEOP
EDP Renováveis, S.A. (“EDPR”) informs about further developments of the Strategic Partnership signed between its principal shareholder EDP – Energias de Portugal, S.A. (“EDP”) and China Three Gorges Corporation (“CTG”), established in December 2011 and that entered into force on May 2012. The envisaged partnership foresees a total €2bn investment by CTG until 2015 (including co-funding capex) in operating and ready-to-build renewable energy generation projects, which will include wind energy assets and selected hydro power plants, as agreed today between EDP and CTG.
EDP and EDPR, through its subsidiary EDP Renewables Europe, S.L. (“EDPR Europe”), have signed a Memorandum of Understanding with CTG and CWEI (Hongkong) Company Limited, a subsidiary of CTG, envisaging the sale of 49% of the equity and shareholder loans directly or indirectly owned by EDPR Europe in ENEOP – Eólicas de Portugal, S.A. (“ENEOP”) consortium, which terms and conditions are broadly in line with those defined in the transaction closed in June 2013 between EDPR Europe and CITIC CWEI Renewables. Considering the formal asset splitting process of ENEOP’s assets, the transaction is expected to occur in 2015.
ENEOP was the winning consortium for the attribution of licenses to develop, construct and operate 1,200 MW in Portugal. Turbine up-rating approval during 2013 will enable a 135 MW increase in the installed capacity, resulting in a total capacity of 1,335 MW. EDPR holds a 40% stake amongst the wind power operators that participate in the ENEOP consortium, and following construction of total capacity, an asset split process will occur through the allocation of the assets to each of the shareholders.
Through this Memorandum of Understanding, EDPR gains further visibility on the ongoing successful execution of its asset rotation program, allowing the company to crystallise the value of its projects’ future cash-flow stream and re-invest in the development of quality and value accretive projects, contributing to EDPR’s self- funding growth strategy.
EDP Renováveis, S.A.