FCC sells 51-percent stake in energy division to reduce debt

Spanish construction and services group FCC said Monday that it had sold a 51-percent stake in its renewable energy division to merchant banking firm Plenium Partners.

The agreement includes a cash payment of eight million euros and most importantly allows FCC to reduce its debt by 763 million euros, and meet its target of bringing total liabilities below five billion euros. FCC will also receive 74.5 percent of the capital gains generated by any future sale of the assets of its energy division

FCC’s energy division comprises 14 wind farms with total installed capacity of 421.8 megawatts, two solar thermal plants with combined capacity of 100MW, and two photovoltaic plants with 20MW. The sale includes all of the group’s wind-power assets and its entire stakes in photovoltaic and solar thermal assets.

BBVA, Bankia and Goldman Sachs acted as advisors in the sale, which FCC had flagged in the business plan it presented in March, and contributes to fulfilling its aim of focusing on water, environmental services and infrastructure.

This sale comes just days after FCC completed the refinancing of the debt of FCC Environment, its UK environmental services subsidiary, amounting to 381 million pounds sterling (456 million euro) for a period of four years.