It has reached an agreement with ENGIE, under which it also acquires a stake of 46% in Abengoa's O&M company which is responsible for operation and maintenance of the plant.
Abengoa (MCE: ABG/P:SM), the international company that applies innovative technology solutions for sustainability in the infrastructure, energy and water sectors, has signed an agreement with the international energy Group ENGIE, for the sale of its participation (40%) in the 100 MW solar thermal plant built by Abengoa in South Africa. In addition, as part of the agreement, ENGIE Africa also acquires 46% of Abengoa's O&M company that is currently in charge of the operation and maintenance of the plant. Abengoa remains as a shareholder of the O&M company with a 46% stake. Completion of the transaction is subject to the fulfillment of certain conditions.
The transaction represents a new milestone in the asset divestment plan of the company that, since 2017, is focused on the development of EPC (Engineering, Procurement and Construction) projects. Net proceeds from the transaction will be dedicated to the repayment of financial debt, in line with Abengoa's deleveraging objectives.
From ENGIE's point of view, the acquisition is part of its low-carbon strategy and also contributes to the country's energy security and the geographic expansion of the electricity producer in South Africa, where it already has 1,220 MW of installed capacity.
Xina Solar One, which - subject to all conditions being fulfilled - will be owned by ENGIE, Industrial Development Corporation (IDC), Public Investment Corporation (PIC) and Xina Community Trust, and is the third plant built by Abengoa in South Africa after Kaxu and Khi Solar One (100 and 50 MW respectively). With 100 MW of power, Xina Solar One uses parabolic trough technology to generate renewable, sustainable and dispatchable power from the sun. Furthermore, this power plant features a thermal energy storage system that uses molten salts to store the necessary energy for a further 5½ hours supply, and thereby assists in meeting the South African peak demand. In this way, the plant supplies clean energy to more than 95,000 South African households and avoids the emission into the atmosphere of 348,000 tons of CO2 per year.
Abengoa is considered a global leader in this sector, where it has developed, designed, built, and/or operated solar thermal plants in four continents, with a total capacity of 1.9 GW, representing approximately 30% of capacity worldwide. In addition, the company is currently participating in 52% of solar thermal capacity under construction.
The Standard Bank of South Africa Limited (acting through its Corporate and Investment Banking division) acted as Financial Advisor to Abengoa.
About Abengoa
Abengoa (MCE: ABG/P:SM) applies innovative technology solutions for sustainability in the infrastructure, energy and water sectors. (www.abengoa.com)
Communication Department:
Marián Ariza
Tel: +34 954 93 71 11
E-mail: communication@abengoa.com
Investor Relations & Capital Markets:
Gonzalo Zubiría
Tel: +34 954 93 71 11
E-mail: ir@abengoa.com
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