February 19, 2021 Read More →

Spain’s Acciona planning to spin off part of its renewables business

Reuters:

Spanish energy and engineering company Acciona is planning to hive off and list its renewable power business on the stock market, the company said on Thursday as it posted an 8% rise in annual profit.

While the scale and structure of the listing have yet to be defined, at least 25% of the new company would be floated and Acciona would remain the majority shareholder. The listing, which would include the entire energy business apart from a stake in turbine maker Nordex, is likely this year to take advantage of strong demand for clean-energy projects.

“In this environment an IPO of our Energy business would provide us the opportunity to accelerate our growth with the right cost of capital and a better balance sheet structure,” said Chief Executive Jose Manuel Entrecanales.

The energy business generated earnings before interest, tax, depreciation and amortisation (EBITDA) of 831 million euros ($1 billion) in 2020. Investment bankers expect Acciona to seek a valuation of at least 10 times the unit’s core earnings in a potential initial public offering (IPO).

The new structure should allow Acciona to increase its installed capacity by 2 gigawatts per year between now and 2025, double its previous target, the company said.

Acciona is one of several Spanish companies taking advantage of government incentives to develop wind farms and solar parks in a sector-wide expansion that is stoking expectations of public listings, partnerships and other deals. Oil and gas group Repsol plans to spin off its low-carbon unit, which will mostly hold renewables assets, and sell a stake to a partner or list it publicly in the next two years.

[Inti Landauro, Arno Schuetze, Isla Binnie and Tomas Cobos]

More: Acciona plans renewables IPO as group profit jumps 8%

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