Iberdrola to sell its stake in Bahia Bizkaia ElectricidadStaff writer ▼ | July 31, 2014
Iberdrola Generacion has entered into an agreement to sell its 25% stake in Bahia Bizkaia Electricidad (BBE) to BP Global Investments, owner of 50% of the company until now.
111 million euros BP Global Investments is the buyer
Closure remains subject to securing the relevant permits and third party consents. Once the sale is completed, the Company will reveal the impact on its consolidated Profit & Loss Account.
BBE runs a 785-megawatt (MW) combined cycle power plant located in Bilbao’s Outer Harbour. The plant is stationed beside the Bahia Bizkaia Gas (BBG) regasification plant, in which Iberdrola also held a 25% stake, sold to RREEF Infrastructure in 2009. After its divestment in BBE, Iberdrola still operates 400 MW thermal power capacity in the Basque country, corresponding to the Santurce combined-cycle power plant.
This operation is part of Iberdrola's disinvestment plan to enhance the Group's strong financial position. According to the 2014-2016 Outlook presented last February, Iberdrola plans to complete divestments in non-core assets and non-strategic countries to the value of €2.5 billion in the 2012-2016 period, of which over €2 billion have been announced thus far.
In the first semester of 2014, Iberdrola agreed to sell its 22.6% stake in the company Itapebi Geracao de Energia to Termopernambuco, a firm 100% owned by Neoenergia. This operation means that Iberdrola now indirectly controls 30% of Itapebi Geracao de Energia. The company has also closed a deal on the transfer of its 6.6% stake in the capital of Portuguese firm EDP - Energias de Portugal. ■