( TF ) 11/16 08:00PM Iberian private-equity firm in 1.2 bln euro wind deal
LISBON, Nov 16 (Reuters) – A group of investors led by Iberia’s leading
private equity firm has bought Portugal’s largest wind power business, Enersis,
from Australian investment company Babcock & Brown Ltd for 1.2 billion euros.
Magnum Capital will take over a portfolio of wind farms with installed
capacity of 515 megawatts and 156 megawatts under construction.
The private equity firm said in a statement on Sunday that it was the
largest deal in the European wind energy sector ever done by a private equity
firm. It showed confidence remains in the alternative energy sector in spite of
the financial crisis sharply reducing investment in it in recent months.
“This transaction was concluded during the biggest global financial
crisis and highlights the consortium’s investment capacity at a particularly
complex moment,” the statement said.
Still, electricity produced by wind power is guaranteed in a fixed-tariff
regime for 15 years in Portugal, ensuring “that the income is not affected by
the current economic crisis.”
Magnum provided 65 percent of the financing for the purchase itself and
raised the rest through local institutional investors such as Espirito Santo
Capital, a part of Banco Espirito Santo bank, and a Nordic clean energy private
equity fund known as Fjord Capital.
Portugal and Spain have seen strong growth of wind power in recent years
and have two of the largest listed wind energy companies, Iberdrola Renovables
and EDP Renewables . Spain’s Gamesa is a leading producer of wind power
turbines.
Investment in alternative energy has suffered during the global financial
crisis and there have been concerns in the sector that enthusiasm could wane,
especially now that oil prices are considerably off their record highs.
Enersis accounts for 25 percent of installed wind power capacity in
Portugal. The business is forecast to post sales of 120 million euros in 2008
and earnings before interest, tax, depreciation and amortisation of 100 million
euros.
(Reporting by Axel Bugge; Editing by Tim Dobbyn) Keywords: PORTUGAL
WIND/POWER
(Axel.Bugge@Reuters.Com, +351-213-509-201, Reuters Messaging:
axel.bugge.reuters.com@reuters.net)