MADRID--(BUSINESS WIRE)--
Borja Acha Besga
Secretary of the Board of Directors
Madrid, 25 July 2024
According to Article 226 of the Securities Exchange Law, Endesa, S.A. hereby informs the following Inside Information (“Información Privilegiada”):
Endesa, S.A. (“Endesa”), through its wholly-owned subsidiary Enel Green Power España, S.L., has signed an agreement with Masdar (“Abu Dhabi Future Energy Company PJSC ”) a major renewable player, for the sale of a minority stake of 49.99 percent of the share capital of the newly created company “Enel Green Power España Solar 1, S.L.” (“EGPE Solar”), which owns all of the photovoltaic solar installations in operation owned by Endesa in Spain, with a total installed capacity of approximately 2GW.
The consideration agreed for the acquisition by Masdar of 49.99% of the share capital of EGPE Solar, is 817 million euros, subject to customary adjustments for these kinds of transactions. Accordingly, the Enterprise Value for the entire share capital of EGPE Solar would be equal to approximately 1.7 billion euros.
The transaction is part of a long-term agreement with Masdar and also comprises the signing of contracts for the purchase of all the energy generated by the plants owned by EGPE-Solar (PPA) by a company wholly owned by Endesa for a period of fifteen years. It is also envisaged a potential future Battery Energy Storage System (BESS) hybridization on the plant portfolio for up to 0.5 GW additional capacity.
The agreement allows Endesa to maintain control and therefore integral consolidation of EGPE Solar, and, consistently, it is not expected any impact in the economic results of Endesa.
The closing of the transaction, which is expected to occur during the fourth quarter of 2024, is subject to several conditions’ precedent customary for these kinds of transactions, including clearance from the Spanish Government on foreign investments.
The transaction is in line with the “Partnership” business model outlined in the 2024-2026 Strategic Plan, which aims to seek partners in strategic assets which allows to retain control while maximizing productivity and returns on invested capital.
Enel Green Power España and Masdar also signed a non-binding Memorandum of Understanding (MoU) to explore a potential alliance aimed at jointly developing renewable generation projects in Spain.
The Secretary of the Board of Directors
Endesa, S.A. Registered offices: Calle Ribera del Loira, 60, Madrid. Registered in the Mercantile Registry of Madrid, page M-6405, volume 323, folio 1, Spanish Tax ID (C.I.F.) A28023430.
“This English-language version has been translated from the original issued in Spanish and is provided for informational purposes only. In the event of discrepancy, the Spanishlanguage version prevails.”