MILAN (Reuters) - Canadian power-producer Boralex Inc (BLX.TO) 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), 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.
Boralex said the French acquisition, including a pipeline of planned wind and solar projects, will add 12 windfarms with a total installed capacity of 186 MW, adding it would increase its overall net installed capacity by 25 percent to 940 MW.
The company expects the deal to immediately add to cashflow and said it will fund the deal with credit facilities and a C$110 million public offering of its subscription receipts.
Boralex was advised by BNP Paribas Corporate Finance in France and National Bank Financial Inc in Canada.
At 0643 ET EGP shares were up 0.6 percent at 1.685 euros.
($1 = 1.1647 Canadian dollars)
($1 = 0.7984 euros)
Additional reporting by Manya Venkatesh in Bengaluru; Editing by Joyjeet Das and David Holmes