Enel sells 50% of its Greek green power subsidiary to Macquarie

Enel said it would receive EUR 345 million from Macquarie Asset Management for 50% of Enel Green Power Hellas. The Greek renewable energy firm would be managed jointly.

Acting through its fully-owned subsidiary Enel Green Power, Italy-based Enel has signed an agreement with Macquarie Asset Management, via the Macquarie Green Investment Group Renewable Energy Fund 2 (MGREF2), for the sale of 50% of Enel Green Power Hellas (EGPH), its fully-owned renewable subsidiary in Greece. The energy giant said the transaction is worth EUR 345 million euros, translating to an enterprise value of EUR 980 million.

Upon the transaction’s closing, Enel Green Power and Macquarie Asset Management are going to enter into a shareholder agreement that envisages joint control over EGPH, the development of the firm’s renewable energy project pipeline and increasing the installed capacity.

Enel to use proceeds to pay off debt

The Italian company revealed it would use the proceeds to pay off its group’s consolidated net debt. Still, the amount does not include EUR 400 million as net debt deconsolidated in 2022, as EGPH was already reported as “held for sale”, Enel pointed out. Moreover, the transaction is expected to generate a positive impact of EUR 390 million on the group’s earnings before interest, tax, depreciation and amortization – EBITDA.

The closing of the sale is expected by the last quarter of 2023 pending clearance from competent antitrust authorities and other conditions usual for such acquisitions, according to Enel.

Energypress reported, quoting unnamed sources, that the joint venture plans investments of EUR 1 billion by 2030 with a focus on batteries and photovoltaics, but also wind power. After tough negotiations, the Australians also agreed to repay debt of EUR 100 million, the news outlet learned.

The news outlet added that Macquarie earlier looked into the possibility to take over Terna Energy together with Australian company First Sentier, but that it eventually backed out and turned its attention on EGPH.

Enel Green Power Hellas has 482 MW in capacity

Enel Green Power Hellas operates 59 plants totaling 482 MW of installed capacity, powered by wind, solar and hydro, as well as six solar projects under construction for an overall capacity of 84 MW. The Greek subsidiary is also developing a portfolio of wind and solar projects, alongside expanding its activities in innovative solutions such as storage and hybrid projects, Enel said.

Macquarie Asset Management is the investment management division of the Macquarie Group, which offers financial services in 34 countries throughout the world. Through its Spear WTE Investments, Macquarie Infrastructure and Real Assets Group (MIRA) earlier bought 49% of the Hellenic Electricity Distribution Network Operator (HEDNO). In addition, MIRA owns most of Czech energy company ČEZ Group’s former businesses in Romania.

Cero Generation, founded by Macquarie’s private equity fund  Green Investment Group (GIG), is developing renewable electricity projects in Greece for corporate power purchase agreements.

Of note, Enel agreed in March to sell its business in Romania to Public Power Corp. (PPC), headquartered in Athens.