Two power generation units that Italian utility group Enel SpA (BIT:ENEL) holds in Peru are set to merge to create a larger, more geographically and technologically diversified entity valued at some USD 2.31 billion (EUR 2.1bn).
Enel Generacion Peru SAA said on Monday it had agreed to carry out a merger by absorption and take over renewables firm Enel Green Power Peru SAC, which is controlled out of Chile by Enel Americas SA. Enel Green Power Peru brings to the deal its two subsidiaries, Marcona and Los Pinos, which agreed to be absorbed in the same transaction.
Following the merger, Enel Green Power Peru, Marcona and Los Pinos will be extinguished. The shareholders of Enel Generacion Peru will be the majority owners of the resulting entity, holding over 70%, according to the company’s bourse filing on Monday.
The enlarged Enel Generacion Peru will be valued as much as the sum of its parts, USD 1.84 billion plus the USD-472-million valuation of the green power business. The new entity will also take over Enel Green Power’s wind and solar farms and their corresponding 20-year power purchase agreements (PPAs) and new non-conventional renewables under construction.
Enel Green Power Peru operates the 132-MW Wayra I wind farm and the 179-MW Rubi solar farm, and it is building the 177-MW Wayra extension and the 123-MW Clemesi solar farm. Enel Generacion Peru operates combined-cycle gas plants and run-of-river and conventional hydroelectric stations located mainly in the centre of the country. The company said that the merger will enable it to take advantage of the existing synergies between all parties.
The merger is subject to shareholders’ approval and other consents.
As Enel Generacion Peru explained in the bourse filing, the merger plan was first conceived in October 2022, before the Enel Group announced it would withdraw from Peru and other non-core markets.
The latest announcement comes after Enel Americas agreed earlier in April to sell Enel Peru’s stakes in its power distribution and supply business and the advanced energy services unit to China Southern Power Grid International. The power generation business is outside the scope of that deal.
(USD 1.0 = EUR 0.908)
