Adds details, background
LISBON, July 15 (Reuters) - Portugal's largest utility EDP said on Wednesday it had agreed to buy Spanish electricity company Viesgo from Macquarie funds in a deal worth 2 billion euros ($2.28 billion) including debt.
In a statement, EDP said it would buy Viesgo for a net equity investment of 900 million euros, and the deal, which will more than double EDP's presence in electricity distribution in Spain, would be financed through a rights issue worth just over 1 billion euros.
The deal is expected to be sealed by the end of the year.
"Viesgo's transaction ... represents a unique investment opportunity for EDP, being fully aligned with its equity story focused on growth in renewables and networks," said EDP's interim chief executive Miguel Stilwell d'Andrade.
The transaction, which puts Viesgo's enterprise value at 2.7 billion euros, will result in EDP consolidating Viesgo's existing net financial debt of 1.1 billion euros.
EDP and Macquarie Infrastructure and Real Assets (MIRA) also agreed to establish a long-term electricity distribution partnership in Spain, and under the terms of the deal MIRA will own a 24.9% stake in EDP's Spanish electricity distribution unit ERedes and in Viesgo‘s electricity distribution units.
As part of the deal, EDP will, through its subsidiary EDP Renovaveis, also acquire 100% of Viesgo's renewables business comprising 24 wind farms and two mini hydro power plants for an enterprise value of 565 million euros.
($1 = 0.8768 euros)
(Reporting by Catarina Demony and Sergio Goncalves, Editing by Andrei Khalip)
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