Repsol’s board of directors have approved the sale of a 25% stake in Repsol Renewables to a consortium of French insurance company Credit Agricole Assurances and Switzerland-based Energy Infrastructure Partners (EIP) for €905m.
The transaction values Repsol’s renewable business at €4.383bn, including debt and minority holdings, the company said.
It added that the incorporation of Credit Agricole Assurances and EIP as partners includes an investment commitment that reinforces Repsol Renovables’ growth in line with the objectives of its Strategic Plan to reach 6GW of installed capacity in 2025 and includes entering new markets and incorporating complementary technologies like offshore wind.
Repsol chairman Josu Jon Imaz said: “Having reputed partners such as Credit Agricole Assurances and EIP joining us in Repsol Renovables represents a validation of our renewable strategy, supports our ambition to be a key player in the energy transition and fulfils our expectations in this important process.
“Our target is to reach an installed capacity of 6GW in 2025 and 20GW in 2030.
“As partners, they share our strategic vision to grow in renewables, contribute additional expertise and underscore the value of our growth platform.”
The transaction, effective from 1 January this year, is expected to close before year-end subject to the approvals of regulatory authorities.
Under the terms of the shareholder agreement, Repsol will continue to control the renewables business.
Repsol Renovables and its affiliates will continue to be consolidated within the accounts of Grupo Repsol.
The transaction will have no effect on the group’s earnings.