Cerberus negotiates the sale of Renovalia for more than 1,000 million before the arrival of a buyer | Companies

Cerberus wants to take advantage of the appetite for renewables in Spain. The fund has decided to try again and negotiates the sale of Renovalia, before the arrival of a possible buyer led by BBVA. The mandate is Citi and now an offer for more than 1,000 million is expected, according to financial sources.

"There is no formal sale process, but what happens is that investors regularly ask about the company and its assets," explains a person familiar with the operation.

Repsol, Endesa, several Chinese funds and Brookfield were interested at the time by the firm, but finally the divergences in the price ruined the operation. Then Cerberus asked for 1,500 million.

The political landscape and sensitivity to renewable energies was also very different. The cut to his profitability carried out by the Government of Rajoy, although it placed it finally in 7,4% as of 2014, and the litigations between the State and the great foreign funds caused the flight of great investors.

The market now sees the new Minister of Ecological Transition, Teresa Ribera, more inclined to green energy, which has once again attracted foreign investors. Ribera has not clarified where the profitability of the sector will be, but sources of the sector advance that this, which should be revised at the end of this year, will be placed below the current one but still be attractive.

In fact, last November Oaktree announced the sale of Eolia to the pension fund of the Canadian province of Alberta, KKR has put on sale X-Elio - for which Repsol and Iberdrol have also been interesteda- and Solarpack has starred in one of the most successful IPOs in recent years.

Since Cerberus decided to put the process fallow and wait for a more prone moment for the sale of Renovalia, several investment banks have knocked on his door to suggest various solutions. Among them have been a possible IPO or undertake its sale by parties. In fact, in recent months BlackRock decided to put on sale the stake it had inherited from the First Resource fund in the joint venture that it shared with Renovalia, Renovalia Resource, as it published CincoDías on December 18th. A window for Cerberus to have fallen off of this part of the business.

Financial sources indicate that, although the objective is to undertake the sale in its entirety, other alternatives are not ruled out either. 85% of Renovalia's business is in Spain and Mexico and, in principle, the buyer will keep these assets in the same block. The seller will value selling other parts of the business to the margin if he can maximize the value. The singular case is that in this case it is the buyer who has approached.

Renovalia has a presence in four other countries: Chile, Italy, Hungary and Canada. It has around 700 megawatts built in wind energy in 10 projects. In photovoltaic it has ten parks with 118 megawatts, which add up to 87 in Mexico in hydraulic and a part of the business dedicated to management and maintenance.

A giant in parks and electricity production

Latest data. The company, acquired by Cerberus in October 2015 for an amount of around 1,000 million euros, has 805 megawatts in operation, 167 under construction and another 512 under development, a phase prior to construction, according to the information appears on your web page. The company was owned by the Ortega family, owner of the Forlasa cheese group, which it sold to Lactalis in February 2010.

Attempt of OPS. In April 2010, Renovalia tried to go public through a capital increase (OPS), with a valuation between 414 and 613 million euros. The operation was suspended due to lack of demand in May of that year.


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