Tokyo touchdown for Enel Australia’s 50pc sale; deal at $655m val
Italian renewables player Enel is expected to sign terms this afternoon to sell 50 per cent of Enel Green Power Australia to Japan’s INPEX in a deal that values the entire business at €400 million ($655 million) including €140 million debt.
Enel Green Power Australia includes solar farms in South Africa.
It would make the Japanese oil and gas giant a 50 per cent owner of Enel’s Australian solar farms portfolio, including 310 megawatts of installed capacity and another 285 megawatts from late-stage development assets.
INPEX and Enel would have equal board representation for the Australian business. Enel would continue to lend its global expertise and procurement prowess across renewables equipment and materials to the joint venture.
The price tag took into account Enel Green Power Australia’s up-and-running assets, mature end of the development pipeline and future capital investment required.
The sale marks the end of a year-long sale process run by Credit Suisse’s Australian bankers. The deal is also a swan song for the Swiss bank in Australian dealmaking.
Credit Suisse began shopping the assets in June 2022, when Enel was looking to sell down 50 per cent to 80 per cent of its Australian portfolio.
The up-for-grabs portfolio included Enel’s 51 per cent stakes in two operational solar farms Bungala 1 and Bungala 2, both in South Australia. The two solar farms have operated since 2018 and had a peak capacity of 275 megawatts (on a 100 per cent ownership basis). They had long-term power purchase agreements (PPA) with Origin Energy.
The Enel portfolio also had a 34 megawatts Victorian solar farm, Cohuna, and a 75.6 megawatts WA wind farm, Flat Rocks Phase 1, under construction. Another solar farm, Girgarre, was ready to
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