Gamesa Corp. Tecnologica SA (GAM), Spain’s biggest wind-turbine maker, climbed the most in three years after agreeing to sell four U.S. wind-power projects to Algonquin Power & Utilities Corp. (AQN) for almost $900 million.
The stock jumped as much as 16 percent to 2.65 euros and was the top gainer on Spain’s benchmark IBEX 35 index, which fell 0.4 percent as of 11:39 a.m. local time. Gamesa is trading 82 percent below its five-year weekly average of 14.92 euros.
“This is positive news because it boosts Gamesa’s earnings,” Francisco Salvador, a Madrid-based strategist at FGA/MG Valores, said by phone today. “The market didn’t expect the company could sell the parks as the U.S. market is in standby, due to regulatory issues.”
The deal will increase Gamesa’s earnings before interest and tax by about $35 million, the Zamudio, Spain-based company said in a statement today. The wind parks, in Pennsylvania, Iowa, Texas and Illinois, will have 240 Gamesa-made turbines and a total generating capacity of 480 megawatts, Algonquin said.
The transaction between Gamesa and Algonquin, a Canadian electricity provider, will need regulatory approval from the Federal Energy Regulatory Commission, which may take about 45 days, Gamesa said. Additionally, both companies reached an agreement to develop wind projects in the U.S. and Canada.
Gamesa will run and maintain the parks for 20 years.
“It’s definitely a good signal and even more given that it’s a profitable deal,” Salvador said.
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