Iberdrola has reached a deal with the Polish companies Energa Hydro and PGE Polska Grupa Energetyczna for the sale of all its wind power assets in Poland, grouped by Iberdrola Renewables Polska where it holds 75% of the capital. The operation was valued at approximately €203 million (840 million Polish zlotys).
The holding company, whose remaining 25% equity is held by the European Bank for Reconstruction and Development, owns five operating wind farms in Poland with a total 184.5 megawatts installed capacity plus a wind project pipeline also in Poland.
This transaction, subject to the applicable approvals, is in line with Iberdrola’s outlook for 2012-14 – presented in London last October – which contemplates divesting assets in non-core businesses and markets for approximately €2 billion in the three-year period, to strengthen the Group’s balance sheet.
Iberdrola has sold non-core assets valued at approximately €1,100 million since the beginning of 2012, including the recently announced sale of 32 operating onshore wind farms in France to EDF Energies Nouvelles, MEAG, ERGO and GE Energy Financial Services and its seven operating wind farms in Germany to MVV Energie AG, through its subsidiary MVV Windenergie GmbH.
Previous transactions include the sale of US-based companies The Energy Network (owner of Hartford Steam) to Energetix and NYSEG Solutions to Direct Energy; all its gas distribution assets in Spain (Madrid, Murcia and Valencia region); its 13.25% stake in Gas Natural Mexico; most of its shares in telecommunications operator Euskaltel – where it still holds a 2% stake – and the sale of GH Electrotermia, a company participated jointly with BBVA through Corporación IBV.
The Company will continue its divestment programme in coming months with the goal of reinforcing the Group’s financial strength, by reducing debt, improving financial ratios and maintaining its credit rating.