ENCE Energía y Celulosa has agreed to sell 49% of the capital of Ence Energía S.L.U, excluding the Puertollano solar thermal power plant, to the infrastructure investment fund Ancala Partners LLP. ENCE will retain control of its subsidiary, with a remaining 51% stake, in addition to its 90% stake in the solar thermal power plant.
The agreed terms imply a value of the perimeter of the transaction of 886 million euros, including 154 million of debt. The agreed price will entail a potential capital gain of up to 184 million euros. These figures exclude the Puertollano solar thermal power plant.
Ence Energía is the largest generator of renewable energy with agricultural and forestry biomass in Spain, with an installed capacity of 266 MW distributed in 8 plants, in addition to the 50 MW of the Puertollano solar thermal power plant.
The Company also has a pipeline of projects amounting to 405 MW to grow in renewable energies in Spain, which already have access to the grid and secured locations. This pipeline is made up of 4 biomass projects, with a joint capacity of 165 MW and another 4 photovoltaic projects, with a joint capacity of 240 MW. The development of these projects is awaiting the upcoming capacity auctions for the implementation of the National Renewable Energy Plan in Spain, while its administrative processing is completed.
The agreed price for the 49% stake in Ence Energía, excluding the solar thermal power plant, amounts to 359 million euros. Of this amount, 225 million would be collected at the closing of the transaction. The collection of up to 134 million remaining is linked to the development of the pipeline of renewable projects. The closing of the transaction is pending ratification at the extraordinary shareholders’ meeting called on December 14.
Additionally, ENCE Energía y Celulosa has started a process to sell its 90% stake in the 50 MW solar thermal power plant in Puertollano, which was acquired in November 2018 for 146 million euros.
ENCE Energía y Celulosa is a leading company in the sustainable use of natural resources for the eco-efficient production of special cellulose and renewable energy. With its two businesses, ENCE wants to be a leading player in the development of the bioeconomy in Spain.
Founded in 2010, Ancala Partners is an independent UK-based infrastructure investment manager with offices also in Luxembourg. Ancala invests in a wide variety of infrastructure sectors, including renewable energy, utilities, intermediate infrastructure, telecommunications, and transportation. Investments include HS Orka (private renewable energy company), Biogen (UK anaerobic digestion company), Portsmouth Water (regulated water company) or Hector Rail (Sweden’s and Germany´s leading locomotive rental and rail logistic company).