EDPR announces Asset Rotation in Europe

edpr announcement

EDPR announces Asset Rotation in Europe

Wednesday 24, April 2019

Madrid, April 23rd 2019: EDP Renováveis, S.A. ("EDPR”) signed a Sale and Purchase
Agreement with institutional investors advised by J. P. Morgan Asset Management
to sell EDPR’s full equity shareholding and outstanding shareholder loans in an
operating onshore wind portfolio with 997 MW of installed capacity (491 MW net
for EDPR – shareholding at 51% in most of the wind farms), for a total consideration
of approximately €800 million (subject to customary closing adjustments). A
Master Services Agreement has also been executed pursuant to which EDPR will
provide operating and maintenance services to the above mentioned portfolio.

In detail, the transaction scope covers 388 MW in operation in France, 348 MW in
operation in Spain, 191 MW in operation in Portugal (part of ex‐ENEOP assets) and
71 MW in operation in Belgium. The total portfolio has been in operation for 7
years on average. EDPR had already previously sold minority stakes in these wind
farms in 2013, 2014 and 2016, and with this agreement, is fully exiting ownership
of these projects.

Based on i) the transaction price and ii) the outstanding external net debt, the total
implied enterprise value for 100% of the assets amounts to €1.6 billion, which
translates to an implied enterprise value multiple of €1.6 million/MW. The
transaction is subject to regulatory and other precedent conditions and is expected
to be completed in the 2Q19.

The asset rotation deal announced today is part of the asset rotation program for
2019‐22 period contemplated in the Strategic update announced in March 12th

The sale majority stakes in projects in operation or under development, while
continuing to provide operating and maintenance services, allows EDPR to
accelerate value creation and book up‐front profits, while recycling capital to
reinvest in accretive growth.

EDP Renováveis, S.A.