Oaktree Is Said to Mull Sale of Spanish Renewable Firm Eolia

  • Wind-power firm draws interest from Shanghai Electric, Endesa
  • Foreign investors are targeting Spanish renewable companies

The owners of Spanish wind-power firm Eolia Renovables de Inversiones SCR SA are exploring a sale amid bids from other energy providers, people familiar with the matter said.

A sale could value the company, which is majority owned by U.S. buyout firm Oaktree Capital Group LLC, at more than 1 billion euros ($1.2 billion), the people said, asking not to be identified because the deliberations are private. 

State-controlled power generator Shanghai Electric Power Co. is among bidders for Eolia, according to the people. Eolia has also drawn interest from Endesa SA, Spain’s second-largest electricity company by market value, and could attract offers from private equity firms, the people said. No final decisions have been made and Eolia and Oaktree, which owns about 71 percent of the company, may decide against a sale, the people said. 

Representatives for Oaktree and Shanghai Electric Power declined to comment. Endesa has said in the past that it is interested in investing in renewable energy and there is a group of about 100 or 200 renewable companies it constantly looks at, a representative for Endesa said, declining to comment specifically on Eolia.

Economic Recovery

Foreign investors have been buying renewable assets in Spain amid the country’s economic recovery and a shift toward clean power sources. Any deal will add to the $41.9 billion in acquisitions of alternative energy companies globally over the past 12 months, data compiled by Bloomberg show.

Last year, Gamesa Corp. Tecnologica SA and Siemens AG agreed to merge businesses to create one of the world’s biggest wind-turbine manufacturers. Cerberus Capital Management is considering a sale of its Spanish renewable-energy company Renovalia Energy, and Spanish billionaire Manuel Jove is weighing a sale of the Avantegenera renewable-energy business, people familiar with the matter have said previously.

Eolia, incorporated in 2007, owns wind and solar plants in Spain, across the rest of Europe and Canada, according to its website.

Shanghai Electric Power agreed last year to acquire a majority stake in Pakistani utility K-Electric Ltd. from buyout firm Abraaj Group for about $1.8 billion. Endesa, controlled by Italy’s Enel SpA, won 399 megawatts in photovoltaic energy capacity in a government-organized auction last month after being awarded 540 megawatts of wind capacity in a May auction.

— With assistance by Melissa Mittelman, Rodrigo Orihuela, and Aibing Guo

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