Renewable energy developer, Enel Green Power’s French subsidiary has been sold to Québec-based power producer, Boralex.
Boralex made an offer to acquire Enel Green Power’s French subsidiary, with a 310MW wind and PV portfolio, earlier this week.
The sale is an exit from the French renewable energy market for EGPF, which primarily operates and constructs wind farms.
As part of the sale, US$366 million has been paid to EGP, giving it a US$4 million net cash position, with US$362 million debt consolidated, and an estimated US$34 million gain from the sale.
Boralex is seeking to become the largest independent wind energy producer in France by acquiring EGPF, and last week offered a US$96.8 million public equity offering that would see it acquire all EGPF shares, with the total net consideration offer from Boralex for EGPF, at the lower price of US$352 million.
EGP said the sale will allow it to focus on other opportunities and developments, particularly in emerging markets.
EGPF reported revenue in 2013 of US$40 million, EGP said the sale does not change its business plan for 2014-2018.
The 15-year Power Purchase Agreements between EGPF and utility, Électricité de France, with EGPF’s strong asset portfolio, would provide a stable, long-term, cash flow for Boralex,
Boralex has said it will finance the deal with an extended long-term project finance debt facility.