EDPR buys back Chinese stake in 1GW European wind portfolio
Assets were sold to CTG-backed funds in 2017, ahead of failed Chinese takeover bid for EDP
The renewable energy subsidiary of Portugal’s EDP group has bought back a 49% stake in a 970MW wind portfolio with assets in Portugal, Poland and Italy after selling the assets to Chinese-backed investment funds six years ago.
The 49% interest in the portfolio was sold to China Three Gorges (CTG) through the Chinese utility's sponsorship of two ACE funds in a deal that was concluded in 2017.
EDPR has now paid €570m ($631m) for the same stake and will once again hold a 100% interest in a portfolio that includes 422MW of gross operational capacity in Portugal, 418MW in Poland and 130MW in Italy, according to an EDP stock market filing announced today (Friday).
The transaction is subject to regulatory approval but has “a strong strategic rationale”, according to EDP.
The Portuguese utility headed by CEO Miguel Stilwell d'Andrade has a 71.27% controlling stake in EDPR.
In its statement, EDP described the portfolio in question as offering a “strong operational track record...immediate cashflow and earnings accretion" and stated that the the buy-back transaction "simplified the ownership structure”.