The operation, which should take place in the second half of 2020, will yield a sum of 515 million euros to the company led by António Mexia.
EDP sold two groups of two CCGTs power plants, in the Navarra region of Spain, with 843 MW of power, and the B2C energy supply business in Spain to Total. The operation, which also involves the sale of the 50% stake in CHC Energia, a joint-venture with CIDE for electricity supply, will generate a total of 515 million euros for the Portuguese company.
This transaction, which should take place in the second half of 2020, after the due approvals by the regulatory entities, “results from a proactive portfolio optimization strategy under execution by EDP, as defined in the 2019-2022 Strategic Plan, and framed within the reshaping of the Iberian Portfolio which aims at reducing exposure to thermal and merchant activities in Iberia,” says the company in a statement sent to the Securities Market Commission (CMVM).
António Mexia considers that this “deal delivers significant value crystallization, highlighting once again the quality of the EDP portfolio, reinforces the low-risk profile of EDP and the weight of regulated and LT contracted activities on EBITDA”.
With this transaction, “EDP clearly surpasses its 2 billion euros disposals target in Iberia, while securing at the same time 65% of the 6 billion euros target of total expected disposal proceeds, (including asset rotations), providing the company added flexibility in managing the remaining execution of the plan,” the company added.