Enel Sells Majority Stake in Mexican Renewables Plants for $340 Million -Update

Italian utility Enel SpA (ENEL.MI) said on Monday that it has sold an 80% stake in a Mexican holding company controlling renewables plants for $340 million.

Through its renewables subsidiary Enel Green Power, Enel said it signed agreements with Canadian institutional investor Caisse de depot et placement du Quebec and the investment vehicle of Mexican pension funds CKD Infraestructura Mexico to sell 80% of the share capital of the Mexican holding company. The Mexican holding company controls--through special purpose vehicles--three renewables plants in operation and a further five that are under construction, with a total capacity of 1.7 gigawatts.

The entire deal is worth a total $1.35 billion, with the sale of the stake accounting for roughly $340 million. The remaining $1.01 billion comprises financing granted to the holding company by the buyers, Enel said.

Enel said it expects the deal to be completed by the end of 2017, adding that it will help the company cut its net debt by about $1.9 billion.

Enel said it will continue to operate the plants under engineering, procurement and construction contracts and long-term asset management agreements.

Write to Pietro Lombardi at pietro.lombardi@dowjones.com

(END) Dow Jones Newswires

October 09, 2017 12:51 ET (16:51 GMT)