Enel Group and Sonnedix finalize $556m solar deal in Chile

In a significant move within the renewable energy sector, Enel S.p.A. and its listed subsidiary Enel Chile S.A. have successfully finalized the sale of their entire equity stakes in Arcadia Generación Solar S.A., a Chile-based company. This company boasts a portfolio that includes four operational PV plants, having a combined installed capacity of nearly 416 MW. The acclaimed international renewable energy producer, Sonnedix, stands as the new owner of these assets. The completion of this substantial deal comes after meeting all pre-set conditions outlined in the stock purchase agreement inked on July 12th, 2023, which importantly included the green light from Chile’s antitrust authority, Fiscalía Nacional Económica (FNE).

Implications of the Transaction for Enel Group

As per the stipulations of the agreement, Sonnedix dispensed a whopping 556 million US dollars, roughly translating to 525 million euros. This sum represents the full enterprise value both parties settled upon. Financial analysts anticipate this transaction to be a boon for the Enel Group, foreseeing a likely reduction in the group’s net debt by around 525 million euros and an uptick in the reported Group net income for 2023 by an estimated 50 million euros. However, the group’s ordinary economic results are expected to remain unaffected. This strategic move is aligned with Enel Group’s forward-thinking objectives, targeting a consistent enhancement in returns on capital employed, thus fortifying their future developmental blueprints.

Overview of the Acquired Solar Assets

Geographically situated in Chile’s northern territories of Atacama and Antofagasta, the solar PV portfolio consists of four prolific plants: Diego de Almagro, Carrera Pinto, Pampa Solar Norte, and Domeyko. Together, they yield a staggering net production of approximately one TWh/year. The Enel Group’s significant presence in Chile, particularly through Enel Chile, positions them as a formidable entity in the country’s burgeoning renewable energy scene, with an eclectic mix of wind, solar, hydroelectric, and geothermal offerings. Meanwhile, Sonnedix, with its expansive history in renewable energy spanning over a decade, boasts an impressive portfolio exceeding 9 GW globally.