Enel Green Power recovers on the Stock Exchange from the cut in the valuation by Citi which had brought the target price to 1,30 from 1,50, confirming the sell recommendation. With the announcement of the joint venture in the photovoltaic sector with the infrastructure fund F2i, prices rose by 1,5% to 1,77 euros. On Friday afternoon, the renewables subsidiary Enel and the fund announced the establishment of a vehicle in which 105 MW of solar energy assets will be conferred from the current portfolio of both companies: the value of EGP's assets is 230 million , that of F2i of 285 million and therefore, based on the respective equity values, a cash contribution of 18 million from Enel Green Power will be necessary.
The operation will have a positive impact on the group debt of 121 million for the latter.
“The transaction is part of Enel Green Power's strategy to optimize its portfolio and is in line with the objectives of the 2015-19 strategic plan. The reduction of the debt, the opportunity to further increase the installed capacity of the vehicle and also to obtain control of it are the key factors of the operation” is the comment of the Akros analysts who, however, do not currently see room for growth for the share in reason for an unattractive dividend yield.
