Ence has completed the sale of a 49% minority stake in Ence Energía to Ancala Partners infrastructure fund and will retain control of its subsidiary, owning the remaining 51% stake.
After the adjustments provided in the purchase agreement signed on November 12, the company has received a first collection of 223 million euros. The additional price of up to 134 million euros is linked to the success in the development of its biomass power plant portfolio, during the next 8 years. Potential capital gains exceed 100%, equivalent to 182 million euros.
With this transaction and with the sale of its CSP plant, also completed this week, Ence strengthens its balance sheet with 387 million euros and will close 2020 with a net debt below 200 million euros and a net debt to EBITDA ratio of 2.9 times.
Ence wants to be a benchmark in the development of the bioeconomy in Spain and these two transactions strengthen its financial position to enhance and diversify its growth in both renewable energy and biomaterials.
Ence is the largest generator of renewable energy with agricultural and forestry biomass in Spain and to boost its growth, the Company has a portfolio of mature renewable projects of 405 MW, ready to be built by the end of 2021 which would mean multiplying by 2.5 times its current installed capacity, thereby contributing to Spain’s ecological transition towards a carbon neutral economy.
The Company also has two projects to expand and diversify its cellulose production towards other biomaterials, also coming from sustainable natural fibers and with growing demand, such as cellulose for viscose and absorbent cellulose for hygienic products.
The investment in these two projects, contemplated in its Strategic Plan, is pending clearance of the uncertainty surrounding COVID-19 and pulp price recovery.