Iberdrola seeks investor for 49% Baltic Eagle offshore wind farm in Germany; would obtain €750 M


Banco Sabadell | According to press reports, Iberdrola has put up for sale a minority stake (49%) in the offshore wind farm Baltic Eagle in Germany (476 MW, with the start of construction expected for 2023, becoming operational in 2024). The wind farm could be valued at 1.5 billion euros (1.1% EV) of which Iberdrola would obtain 750 million.

Valuation: The sale of minority holdings to fund renewables expansion is part of the company’s strategy. In this way, it aims to finance part of the PE 2023-2025 (58 billion euros) with asset sales (8%) and strategic alliances (7%). This year it has sold a minority stake in Wikinger and is looking for partners for a wind farm in Spain and for East Anglia III. In any event, the consideration from the sale of the Baltic Eagle stake would be small (1.7% NFD, 1% of capitalisation).

Separately, the daily Expansion said Norges Bank Investment Management would be interested in acquiring 49% of Iberdrola’s 1,2 GW renewables portfolio in Spain. The whole portfolio is valued at 1.2 billion euros, the newspaper said.

Norbolsa said that with this transaction, slated for the beginning of 2023, Iberdrola would inject around 600 million euros, advancing its asset rotation plan from which it expects to garner 1.7 billion euros annually until 2025.

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