星期二, 1月 19, 2021
Home PV Markets EDP to buy $2.9 bln U.S. Horizon Wind Energy

EDP to buy $2.9 bln U.S. Horizon Wind Energy

Energias de Portugal (EDP) has agreed to buy U.S. wind-park company Horizon Wind Energy from Goldman Sachs at an enterprise value of $2.9 billion to enter the U.S. market and boost its position in renewable energy.


"This purchase is completely consistent with our commitments … and allows EDP to have a leading global position in renewables," EDP Chief Executive Antonio Mexia told a conference call with analysts on Tuesday. "We don't foresee an acquisition as big as this in coming years."


Power utility EDP, Portugal's largest industrial company,


said the equity of Horizon totaled about $2.15 billion and it has debt of around $180 million. The acquisition would be adjusted for investments, which are estimated at $600 million, EDP said. The purchase would be financed by $2.5 billion in debt and a tax credit worth $400 million.


The purchase would make EDP a leading global renewables player with expected wind-power generation of 3,800 megawatts by the end of 2007.


Houston, Texas-based Horizon has 559 gross megawatts of operating wind projects and another 997 MW under construction due to be completed by the end of this year.


"Horizon also has a strong pipeline of projects in several stages of development in 15 different states across the country, with combined aggregate generating potential of over 9,000 MW," EDP said.


EDP Chief Financial Officer Nuno Alves said the purchase would be accretive for earnings per share in 2010. He said it would boost growth in EDP's yearly EBITDA, or earnings before interest, tax, depreciation and amortization, to 14 percent from 11 percent.


Filipa Ferreira, an analyst at Lisbon Brokers, said EDP's total investment would cost slightly more than 1 billion euros ($1.33 billion) which "considering the capacity in operation and the pipeline of expected capacity is not expensive."


"We see this purchase as very positive, it is a purchase in a market with strong growth and high potential," Ferreira said.


At 1119 GMT, EDP shares were 1 percent higher at 4.14 euros.


The deal would imply additional capital expenditure of 3.5 billion euros between 2007 and 2010, Alves said.


 

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