Italian manager points to Endesa’s bid to take over Solaria
Endesa could make a splash with Solaria. Italian asset manager Oddo Bhf has published a report explicitly stating that the acquisition of Solaria by energy company Endesa, owned by Italian company Enel, would make “strategic and financial sense.” The company flagged the transaction at a price almost 75% higher than the price at which the Díaz-Tejeiro family’s renewable energy company is listed (20 euros per share, compared to its 11.5 euros closing price yesterday). When asked about the surgery, Solaria declined to comment. Endesa, for its part, assured that it does not intend to implement it.
However, according to Oddo Bhfa, the strategy of the three players “may coincide.” “We think that Solaria’s position in photovoltaic energy in Spain, as well as brands in Italy and Germany, could be of interest to Enel and its subsidiary Endesa,” he elaborates. Solaria occupies a position which, if realized, This would fill a strategic gap between the firm headed by Jose Bogas and the Italian parent company.
On the one hand, Endesa will face the closure of its nuclear power plants in the coming years, which will lead to a shortfall in electricity production that will have to be filled. On the other hand, Enel has developments in wind and solar energy in Italy. “relatively limited” indicated by the fund manager. The acquisition of Solaria will give Enel a boost to renewable energy development in its home country and open up the prospect of gaining a foothold in Germany, they say.
Oddo Bhf makes sales estimates based on transactions of listed independent renewable energy producers over recent years. A valuation that increases the value of the company by almost 1,000 million (to 2,490 million euros from the current 1,430 million). Endesa will be in a better position than Enel will lead the operation, taking into account the location of Solaria’s assets, the simplification of public procedures and the elimination of political contingencies.
Long term relationship
The cooperation between Endesa and Solaria has already been fruitful in the past. At the end of September last year, both utilities announced they had signed a long-term supply contract (LDP) for 126 megawatts (MW) over the next ten years.
In its 2023 annual reports, the company controlled by Díaz Tejeiros said it has a portfolio of 18.9 gigawatts (GW) of projects, more than half of which are in Spain, 30% in Germany, 14% in Italy and 3% in Portugal .
Endesa, for its part, is in the process of selling its Ra 1 and Ra 2 renewable parks with a capacity of approximately 3,800 MW. This operation is valued at more than 2 billion euros.
Precisely, in order to insure against the loss of generating capacity, the electric power company installed an innovative state of photovoltaic plants Ra 1 (2000 MW). An investor in his portfolio must support for the conclusion of an electricity purchase and sale agreement generated by these power plants in a very long term so that the company can offer the cheapest energy to its customers.