Brazil-based power company Engie Brasil Energia has announced its agreement to purchase five operational photovoltaic power stations in Brazil from Atlas Renewable Energy, a company owned by the investment fund Global Infrastructure Partners (GIP).
The deal, which involves solar farms with a combined installed capacity of 545 megawatts (MWac), is valued at approximately 3.24 billion reais ($646.04 million), as confirmed by Engie Brasil in a securities filing. This valuation encompasses Atlas' net debt of 971 million reais.
Engie Brasil, under the control of the French energy giant Engie, anticipates a positive impact on its EBITDA margins in the long term, given the already contracted power with “compatible returns.”
Eduardo Takamori, Chief Financial Officer of Engie Brasil, emphasized the strategic importance of acquiring operating assets with contracted energy, describing it as an attractive option for efficiently expanding their business amid the current market conditions.
In a separate statement, Atlas Renewable Energy expressed its intention to reinvest the proceeds from the deal in developing new renewable projects in Brazil, maintaining a substantial installed capacity of 1.8 gigawatts in the country even after the transaction. This includes two solar parks under development in Minas Gerais state and two other operational projects, with the company characterizing the transaction with Engie Brasil as an “asset rotation.”
Fabio Bortoluzo, country manager at Atlas, highlighted the company's significant growth in Brazil, emphasizing that the country remains one of its key markets.
It is worth noting that Global Infrastructure Partners (GIP) acquired Atlas Renewable Energy from sustainable infrastructure investor Actis in late 2022.
The solar farms acquired by Engie Brasil are situated in the Brazilian states of Bahia, Ceara, and Minas Gerais. The completion of the deal is subject to approval from local regulators, as indicated by both companies.
