MILAN (Reuters) - Italy’s Enel Green Power EGPW.MI has agreed to sell a 49 percent stake in a newly created company holding its North American renewable energy assets to GE Energy Financial Services for around $440 million in a bid to fund growth.
The new company, EGPNA Renewable Energy Partners LLC, includes a 560 megawatt (MW) portfolio of wind, geothermal, hydropower and solar generation assets in operation as well as a 200 MW wind farm currently under construction, Enel Green Power said in a statement on Tuesday. All assets are based in North America.
Enel Green Power’s North American subsidiary will hold the remaining 51 percent stake, it added.
“The transaction is an early and important step forward in the delivery of our strategy to actively manage Enel Green Power’s portfolio of assets and further strengthen our growth opportunities globally,” Enel Green Power Chief Executive Francesco Venturini said in the statement.
As part of the deal, GE Energy Financial Services will also receive, for an initial period of three years, a right of first offer to invest in operating assets borne out of the development pipeline of Enel Green Power’s North American subsidiary and any other operating assets the unit may offer for sale.
Enel Green Power is controlled by Italy’s biggest utility Enel (ENEI.MI). Boosting capacity at its green power division is one of Enel’s priorities over the next five years.
Reporting by Agnieszka Flak