Endesa, Enel Reach Deal To Combine Renewable Assets


The boards of directors of Endesa SA and Enel SpA have agreed to pool the renewables businesses of each company in Spain and Portugal under a single entity, within the consolidated perimeter of EPG, which is a wholly owned subsidiary of Enel engaged in the development of renewable energies throughout the world.

Presently, Endesa carries out its renewable energy activities in Spain and Portugal through Endesa Cogeneracion y Renovables SL (ECYR), wholly owned by its subsidiary, Endesa Generacion SA.

EGP, through its wholly owned subsidiary, Enel Green Power International BV, carries out renewable production in Spain and Portugal through its 50% stake in Enel Union Fenosa Renovables SA.

The purpose of the transaction is for Endesa and Enel to manage and develop all their renewable assets in Spain and Portugal through a single platform, within the perimeter of EPG, making full use of the existing company, ECYR.

The consideration of the acquisition and the contributions to ECYR would be at fair value. The companies involved in the transaction, Eufer and Ecyr, have been valued by independent investment banks, BBVA and Banco Santander (financial advisers of Endesa and EGP, respectively), which have issued the fairness opinions about the economic value of the respective companies for the boards of directors of both companies.

The resulting entity would have, once fully integrated, 1.4 GW of operational attributable capacity and a diversified portfolio in several renewable energy technologies including wind, small hydro, photovoltaic, biomass, and combined heat and power.

Endesa will retain a presence in governing bodies of ECYR and will play a key role in the operational management of its sites, the management of the power produced and the management of relations with state, autonomous and local authorities.


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