FCC of Spain Sells Half of Renewables Unit to Cut Debt
Fomento de Construcciones & Contratas SA, a Spanish contractor, sold 51 percent of its renewable-energy unit as part of a plan to cut debt and focus on other industries.
The company sold interests in Spanish wind and solar-power plants with a combined capacity of 422 megawatts to Madrid-based Plenium Partners SA, reducing net debt by 763 million euros ($1.05 billion), FCC said today in a statement. Plenium wasn’t able to immediately confirm the deal when Bloomberg News called.
FCC, like most other large Spanish contractors, is scaling back its number of business areas following years of declining infrastructure spending in the country. It announced a three-year plan in March to reduce borrowings and focus more on water and environmental services.
Spanish competitor Actividades de Construccion & Servicios SA, the country’s biggest construction company, sold most of its renewable-energy assets in 2011.
FCC will earn 8 million euros when the deal with Plenium is signed and 74.5 percent of the capital gains should the infrastructure investor in turn sell any of the assets, a separate regulatory filing shows. FCC’s energy unit owns 14 wind farms as well as majority stakes in two 50-megawatt solar-thermal power stations and a pair of photovoltaic plants.
The company already sold 30 percent interests in the solar-thermal projects to Mitsui & Co. (8031) in 2010 and held talks at the time to sell part of its energy unit to the Japanese trading company.
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