Boralex offers $343 million for Enel Green Power French unit

Tue Dec 16, 2014 7:10am EST
 
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By Stephen Jewkes

MILAN (Reuters) - Canadian power-producer Boralex Inc (BLX.TO: Quote) has offered to buy Enel Green Power's (EGP) EGPW.MI French business for around $343 million, as the Italian company sheds more of its European business to focus on emerging markets.

In a statement late on Monday, Boralex said it expected to become the largest independent wind power producer in France following the deal, with an installed capacity of 455 megawatts. [ID:nCNWGxylGa]

A spokeswoman for EGP confirmed the company had received an offer from Boralex but gave no further details. The company's board is expected to meet in coming days to discuss the offer.

EGP, 69 percent owned by Italy's biggest utility Enel SpA (ENEI.MI: Quote), previously said it expected to sell its wind power assets in France by the end of this year.

The Italian green energy company has gradually been shifting its attention away from Italy and Spain to countries with abundant resources, good growth prospects and reliable regulation.

Separately EGP said on Tuesday it expected to book a capital gain of around 110 million euros ($138 million) from the sale of a stake in a joint venture in El Salvador.

Enel, Europe's most indebted utility, is looking to make disposals of more than 4 billion euros this year to help it hang on to its investment-grade credit rating.

Earlier this year, EGP also announced plans to sell a minority stake in its North American renewables portfolio to generate cash for development.   Continued...