Macquarie Infrastructure and Real Assets and Wren House sell part of Viesgo’s portfolio to Repsol for EUR750m
Macquarie Infrastructure and Real Assets (MIRA), via Macquarie European Infrastructure Fund 4 (MEIF4), and Wren House Infrastructure are to sell part of Viesgo to Repsol in a deal valued at EUR750 million.
Repsol will acquire the majority of Viesgo’s unregulated assets including Viesgo Supply, which has electricity and gas contracts with 750,000 households and businesses, as well as 700MW of conventional generation hydro power (both pumping storage and run-of-river); and two Combined Cycle Gas Turbine (CCGT) plants with a total installed capacity of 1650MW.
MIRA and Wren House will retain Viesgo’s regulated entities including the electricity distribution network business which spans 31,150 km through Northern Spain and is considered one of the Iberian Peninsula’s most important power distribution assets. In addition, Viesgo will retain 462MW of onshore wind capacity across 23 wind farms in Spain and Portugal as well as 25MW of Spanish mini-hydro assets, and two coal-fired power plants located in Andalusia, Spain.
“This strategic transaction will allow Viesgo to increase its focus on its regulated asset base, ensuring that it is well positioned to capitalise on new opportunities resulting from the increased electrification of the economy, and the ongoing energy transition. Viesgo is embracing new technological developments and embarking on a significant digital transformation plan, which we are confident will allow it to build on its strong market position,” says Juan Caño, Head of Iberia, MIRA and member of the Board of Directors of Viesgo.
“MIRA has extensive knowledge and expertise running regulated networks and in renewables and we are proud to be invested in Viesgo. We look forward to continuing to support the company in its future success,” continued Caño.
“Wren House and MIRA have invested together to build and grow Viesgo since its acquisition, supporting major asset overhauls and the implementation of pioneering customer-oriented initiatives. We strongly believe Repsol is well positioned to continue steering the acquired portfolio in the same direction. This transaction allows us to focus on the regulated assets which are core to our strategy, whereby we deploy our considerable experience to invest in large-scale assets with strong cash flows and good potential for growth,” says Piotr Sochocki, Executive Vice President of Wren House Infrastructure Management and member of the Board of Directors of Viesgo.
MEIF4 and Wren House acquired 100 per cent of Viesgo, known as E.ON Spain at the time, in March 2015.
The transaction is expected to be completed by the end of the year, following the necessary regulatory approvals. No redundancies are expected as a result of the transaction.