EDPR announces Asset Rotation in Europe | EDP Renováveis

Madrid, April 23rd 2019: EDP Renováveis, S.A. ("EDPR”) signed a Sale and Purchase

Agreement with institutional investors advised by J. P. Morgan Asset Management

to sell EDPR’s full equity shareholding and outstanding shareholder loans in an

operating onshore wind portfolio with 997 MW of installed capacity (491 MW net

for EDPR – shareholding at 51% in most of the wind farms), for a total consideration

of approximately €800 million (subject to customary closing adjustments). A

Master Services Agreement has also been executed pursuant to which EDPR will

provide operating and maintenance services to the above mentioned portfolio.



In detail, the transaction scope covers 388 MW in operation in France, 348 MW in

operation in Spain, 191 MW in operation in Portugal (part of ex?ENEOP assets) and

71 MW in operation in Belgium. The total portfolio has been in operation for 7

years on average. EDPR had already previously sold minority stakes in these wind

farms in 2013, 2014 and 2016, and with this agreement, is fully exiting ownership

of these projects.



Based on i) the transaction price and ii) the outstanding external net debt, the total

implied enterprise value for 100% of the assets amounts to €1.6 billion, which

translates to an implied enterprise value multiple of €1.6 million/MW. The

transaction is subject to regulatory and other precedent conditions and is expected

to be completed in the 2Q19.



The asset rotation deal announced today is part of the asset rotation program for

2019?22 period contemplated in the Strategic update announced in March 12th

2019.



The sale majority stakes in projects in operation or under development, while

continuing to provide operating and maintenance services, allows EDPR to

accelerate value creation and book up?front profits, while recycling capital to

reinvest in accretive growth.





EDP Renováveis, S.A.