EDP has already closed the sale of six hydro plants in the Douro to a consortium led by the French company Engie, in which CréditAgricole and Mirova – Grupo Natixis also participate. The sale totalled 2.2 billion euros, 200 million more than the amount indicated by the market. The business is part of the sale of non-strategic assets of Electrica, included in EDP 2019-2022’s strategic plan.
“EDP – Energias de Portugal, S.A. has agreed to sell a portfolio of 6 hydro plants in Portugal to a consortium of investors formed by Engie (40% stake), Crédit Agricole Assurances (35%) and Mirova – Grupo Natixis (25%), in a transaction of 2.2 billion euros,” it announced in a statement to the Securities Market Commission (CMVM).
The hydroelectric power stations in the process of sale total 1,689 megawatts (MW) of installed capacity and are located in the Douro River basin. There are three power plants (Miranda, Bemposta and Picote) with 1.2 GW of installed capacity and three pumping stations (Foz Tua, Baixo Sabor and Feiticeiro) with 0.5 GW of installed capacity.
The strategic plan of EDP 2019-22, presented to investors in March, CEO António Mexia mentioned the intention to invest more than six billion euros in the sale of non-strategic businesses for the group, identifying mainly market assets and thermal power stations in Portugal and Spain.
“Buyers for the assets there are always many,” said Mexia last month, reaffirming that the goal was to close the deal by the end of this year. According to the manager, the low interest rate environment drives investors to look for yields and makes the demand for these assets robust.
As the deadline pointed out by Mexia approaches, in the last days the investors have incorporated the business in the stock prices. EDP has significantly increased its value in the last sessions and trades at its highest value since June 2008. After the announcement to the CMVM, the electric company has valued 0.6% to 3.80 euros per share.