Czechia-based independent power producer ENERGO-PRO announced on 11 October that it has completed the acquisition of 100 per cent of the share capital in Spanish companies Xallas Electricidad y Aleaciones (“Xeal”) and Feroe Ventures & Investments (“Feroe”) from global investment firm Sixth Street.
To finance the transaction, ENERGO-PRO has obtained a 300 million-euro bridge loan from JP Morgan and Goldman Sachs, the company confirmed in a press release.
Xeal operates ten hydropower plants with a total capacity of 167 megawatts (MW) and two ferroalloy plants. Feroe has applied for the grant of a concession for a new pumped-storage plant with a planned capacity of 400 MW.
In 2022, the target group companies generated 386 gigawatt hours (GWh) of electricity, recorded revenues of 185 million euros and EBITDA of 45 million euros.
ENERGO-PRO owns and operates 34 hydropower plants in Bulgaria, Georgia and Türkiye with a total installed capacity of 859 MW. It is also active in Latin America and is currently constructing a new hydropower plant in Colombia. Moreover, the company operates electricity distribution networks in Bulgaria and Georgia, serving more than 2.5 million customers.
“The acquisition of hydropower plants in Galicia is part of the diversification of our activities which aims to spread macroeconomic and geopolitical risks. For the first time, we are targeting one of the largest electricity markets in the eurozone which we consider to be promising in terms of our strategic focus,” said Petr Milev, Chief Executive Officer of ENERGO-PRO Group.
Companies affiliated with ENERGO-PRO also own and operate two greenfield hydropower plants in Türkiye: Alpaslan II and Karakurt with a total installed capacity of 377 MW, as well as two hydropower plants in the Czechia. The group’s total installed capacity exceeds 1,248 MW.
The volume of sales denominated in euros will increase “which correlates positively with ENERGO-PRO’s capital structure,” the company said in the press release. Part of the acquisition financing debt is denominated in euros. The company is entering the eurozone market, with Spain’s credit rating higher than that of Bulgaria, Georgia and Türkiye, where ENERGO-PRO has most of its assets.