EDP – Energias de Portugal, which has China Three Gorges as its main shareholder, has agreed to buy Spanish electricity company Viesgo from Macquarie funds in a deal worth EUR 2 Bi, including debt.
Portugal’s largest utility will more than double its presence in electricity distribution in Spain, with the deal.
EDP will buy Viesgo for a net equity investment of EUR 900 million, financed through a rights issue worth just over 1 billion euros.
The transaction, which puts Viesgo’s enterprise value at 2.7 billion euros, will result in EDP consolidating Viesgo’s existing net financial debt of 1.1 billion euros.
“Viesgo’s transaction … represents a unique investment opportunity for EDP, being fully aligned with its equity story focused on growth in renewables and networks,” said EDP’s interim chief executive, Miguel Stilwell d’Andrade.
EDP and Macquarie Infrastructure and Real Assets (MIRA) also agreed to establish a long-term electricity distribution partnership in Spain, and under the terms of the deal MIRA will own a 24.9% stake in EDP’s Spanish electricity distribution unit ERedes and in Viesgo’s electricity distribution units.
MIRA will invest 700 million euros including debt and equity.
As part of the deal, EDP, through its subsidiary EDP Renovaveis, will also acquire 100% of Viesgo’s renewables business comprising 24 wind farms and two mini-hydropower plants for an enterprise value of 565 million euros.