Iberdrola SA (IBE), Spain’s biggest utility, said it sold its French renewables unit to General Electric Co. (GE:US), Meag and Electricite de France SA.
The deal is valued at 350 million euros ($462 million), including the sale price, loans and debt repayments, according to an Iberdrola filing today posted on the Spanish stock market regulator’s website. A further payment of 50 million euros is possible, Iberdrola said, without detailing the conditions.
Chairman Ignacio Sanchez Galan said in a Dec. 2 interview he was negotiating sales of French, German and Polish wind farms, and has now announced deals in Germany and France. The latest sale means Iberdrola has divested about 850 million euros of assets in 2012 as part of a plan to sell 2 billion euros worth by the end of 2014 to strengthen its balance sheet. The French unit that Iberdrola is selling directly or indirectly owns 32 wind farms, with a total of 321.4 megawatts of capacity, according to the filing.
Meag Munich Ergo Asset Management GmbH, an asset manager for Munich Re and Ergo, acquired 40 percent of the French wind farms through MR Rent-Investment GmbH, a Munich Re unit, according to today’s filing. GE took another 40 percent through Guayama PR Holdings BV, and EDF’s renewables unit took the remaining 20 percent, the statement shows.
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