The North American unit of Italian energy major Enel SpA (BIT:ENEL) has entered into an agreement to sell a portfolio of US geothermal and solar power plants totalling 150 MW to Ormat Technologies Inc (NYSE:ORA).
Under the terms of the deal, Ormat will pay a total of USD 271 million (EUR 256m) for all of Enel’s geothermal assets in the country plus a number of small solar parks. Subject to antitrust clearance, the transaction is seen to close in the forthcoming months.
Enel said in a press statement that this deal aligns with its asset rotation strategy through which the company seeks to secure funds for future development plans and, at the same time, simplify the group structure.
The seller expects the transaction to generate a positive effect on its consolidated net debt of about EUR 255 million and a negative impact of around EUR 35 million on its reported EBITDA. No impact is anticipated when it comes to the group’s ordinary economic results.
(USD 1.0 = EUR 0.944)