Siemens Gamesa wind power developments attract more than twenty investors – CVBJ
12/29/2021 at 07:35 CET
The sale of wind farms Siemens Games. As reported by financial sources to EL PERIÓDICO DE ESPAÑA, Last week, the company received nearly twenty offers without obligation buy these renewable assets under development, divided into 70 projects totaling around 3,000 MW and spread between Spain, France, Italy and Greece. Stakeholders include large traditional energy companies, National and international; venture capital funds and investors specializing in infrastructure.
The same sources indicate companies like Iberdrola, Naturgy, Repsol or Orsted Energy and funds like Blackstone, CPPIB, F2i or Hermes, among others. According to the same sources, at the end of next January the offers will be received with the idea of choosing the winner during the first quarter of next 2022. The same sources indicate that The process is one of the most competitive in recent months as it is one of the last large platforms of renewable assets under development in Spain that remain for sale..
These wind power developments are in valued at around 300 million euros, although the price could rise to more than 500 million due to the interest that these promotions have generated. At the end of summer Siemens Gamesa hired American Bank of America (BofA) to orchestrate a competitive process for the disposal of these green assets and thus to concentrate on its core business, the manufacture of wind turbines for the renewable industry. Legal advice is handled by CMS Albiñana & Suárez de Lezo.
It must be remembered that In August 2020, the CEO of Siemens Gamesa, Andreas Nauen, announced to investors and analysts that they had started a strategic review of your company in order to run different assets in order to obtain sufficient liquidity to keep afloat its activity, which has been strongly impacted by the progress of the coronavirus pandemic. Concretely, it lost 900 million euros last year while the virus slowed down the development of a large ongoing order book, driven by the heat of the energy transition on the Old Continent.
However, Siemens Gamesa was confident to recover pre-pandemic numbers throughout 2021 and return to profit, but recorded red numbers of 672 million. Despite the 32% reduction compared to the losses of the previous year, increase in supply costs and decrease in wind turbine orders (17.3% less, around 2,500 million less) weighed on the group’s accounts, which is why it decided to focus exclusively on the manufacture of wind turbines and to obtain liquidity on the sale of wind power developments.
Indeed, the group wishes to focus particularly on the world of offshore wind power because of the great growth prospects expected in the face of the slowdown in onshore wind power, in which the factories in the Basque Country, Navarre and Castile are specialized. and-León. This operation comes as rumors circulate in the market according to which a possible takeover bid by the group’s parent company, the German Siemens Energy, on the former Gamesa is mentioned.
The Spanish company merged with the German wind energy company in June 2016, creating a world leader with a turnover of 9.3 billion euros at the time and an order book valued at 20 billion euros. Today, its portfolio amounts to 32,542 million and achieves a turnover of 10,198 million. Either way, the company’s shares are down 56.4% from a year ago, trading at € 20.91 per share at the close of yesterday’s trading session.
The moment to release this portfolio of renewable developments is not fortuitous, because Interest in these types of assets has exploded as decarbonising the economy has grown in importance on a global scale while this global energy transition has accelerated due to the arrival of the coronavirus. Also, during the pandemic, these types of assets have shown their resilience compared to other traditional sectors more impacted because it is protected by public policies that promote its development.
In this context, the number of investors interested in the renewable energy business is growing, looking for assets offering good returns in counter-cyclical sectors. So it is more and more often find a wide variety of investors in these competitive auctions, ranging from venture capital funds specializing in renewable energies or infrastructure to insurance companies, including traditional energy companies that must rapidly transform their activities.
Developers of this type of asset benefit greatly from this appetite aroused by the renewable world, since they manage not only to make profit or money with the sale of green projects, but also they repeatedly find a partner who helps them professionalize the business or offers them financing to be able to start these projects, which often require heavy investments.