Enel Green Power to divest 50% stake in Australian operations to INPEX
Enel, through its subsidiary Enel Green Power (EGP), has announced an agreement to sell 50% of its Australian activities, represented by Enel Green Power Australia and Enel Green Power Australia Trust (collectively EGPA), to INPEX Corporation.
The deal, which values EGPA at approximately €400 million, will result in joint control of the company by EGP and INPEX.
The agreement aligns with Enel’s current Strategic Plan, aiming to implement partnerships in specific businesses and regions to increase value creation. With INPEX’s inclusion, the two companies will oversee EGPA’s renewable generation portfolio, continue developing its project pipeline, and aim to increase its installed capacity, thereby supporting Australia’s net zero emissions goal.
Enel Green Power to sell 50% of Australian operations to INPEX. Photo courtesy of Blackcat/Wikimedia Commons.
EGPA’s current operations comprise three solar plants with a total installed gross capacity of 310MW, one 76MW wind project under construction, and a 93MW solar project in progress. The company is also developing a considerable portfolio of wind, solar, storage, and hybrid projects throughout Australia and expanding its retail and trading operations.
The sale, subject to the approval of the Australian Foreign Investment Review Board and relevant Antitrust authorities, is expected to positively impact Enel’s 2023 Group ordinary and reported EBITDA by approximately €87 million and reduce the Group’s consolidated net debt by about €145 million. The transaction is expected to close upon fulfilment of certain customary conditions precedent.