ENGIE signs agreement with ECP for sale of its 75% shareholding in three generation assets
OREANDA-NEWS. November 01, 2017. ENGIE is announcing today the signing of an agreement with Energy Capital Partners (ECP) for the sale of its 75% shareholding in three generation assets in the United Kingdom.
This sale concerns the gas-fired power plants of Saltend and Deeside as well as the Indian Queens oil-fired peaking plant, with a total gross capacity of 1,841 MW1. These units were 75% owned by ENGIE and 25% by Japan’s Mitsui & Co. Both partners agreed to sell their stake in the three power plants to Energy Capital Partners, a private equity firm focused on investing in energy infrastructure.
The transaction is part of ENGIE’s 2016-2018 transformation plan and is in line with the Group’s ambition to reduce its exposure to merchant activities. The sale represents a total enterprise value of £205 million (around €232 million).
The transfer of the three assets to ECP will be effective as of today. As a result of this transaction, 57 employees will join the purchasing company, and ENGIE has supported these employees through the sale process.
ENGIE’s UK business has been repositioning its activities in line with the wider Group strategy by investing in low carbon and flexible power generation (including a £50 million refurbishment at Ffestiniog pumped storage power station, part of its 2 GW First Hydro subsidiary in North Wales, and the purchase of a 23.3% stake in the 950 MW Moray East offshore wind farm project in Scotland). ENGIE is one of the largest suppliers of gas and electricity to UK business and launched a domestic energy supply business in May 2017, the largest company to enter the UK domestic supply market in 15 years.About ENGIE
ENGIE is committed to taking on the major challenges of the energy revolution, towards a world more decarbonised, decentralised and digitalised. The Group aims to become the leader of this new energy world by focusing on three key activities for the future: low carbon generation in particular from natural gas and renewable energy, energy infrastructure and efficient solutions adapted to all its customers (individuals, businesses, territories, etc.). Innovation, digital solutions and customer satisfaction are the guiding principles of ENGIE’s development.