Engie Brasil buys solar parks from GIP for US$ 646 million

The electric company Engie Brasil Energia said on Monday that it agreed to purchase five photovoltaic plants in operation in Brazil to Atlas Renewable Energy, a company owned by the investment fund Global Infrastructure Partners (GIP).

The purchase operation of the solar parks, which total an installed capacity of 545 megawatts (MWac), is valued at about 3,240 million reais (about US$ 646 million), Engie Brasil reported in a stock market statement, which includes the net debt of Atlas of 971 million reais.

The company, controlled by the French energy giant Engie, stated that the operation is likely to positively affect its long-term gross operating profit margins, since it already has contracted energy with “compatible performances”.

“The acquisition of operating assets, with contracted energy, has become an attractive option to efficiently expand our businesses at this time in the market,” said chief financial officer Eduardo Takamori.

In a separate statement, Atlas stated that it will try to reinvest the money from the operation in the development of new renewable energy projects in Brazil, noting that, after the transaction, it will continue to have 1.8 gigawatts of installed capacity in the country.

This includes two solar parks under development in the state of Minas Gerais and two other projects in operation, according to the company, which described the transaction with Engie Brasil as “asset rotation”.

“Atlas is growing significantly in Brazil (…) and the country continues to be one of its main markets,” said Fabio Bortoluzo, national director. GIP bought Atlas from sustainable infrastructure investor Actis at the end of 2022.

The solar parks acquired by Engie are located in the Brazilian states of Bahia, Ceará and Minas Gerais. The deal is still pending approval from local regulators, the companies said.

Source: Reuters