MADRID, Dec 16 (Reuters) - Wind turbine maker Siemens Gamesa
is expecting initial bids on Friday for the wind farm
development unit it is looking to sell as it focuses on
returning its core business to profitability, sources familiar
with the matter told Reuters.
A deal could be worth 300 million euros ($340 million) or
more, they said.
Countries are clamouring for renewable energy infrastructure
to help curb climate change, but wind turbine makers are
struggling to protect their profits from rising steel prices and
logistical logjams linked to COVID-19.
This is piling pressure on turbine makers' margins, which
were already thinning as governments phase out subsidies.
Siemens Gamesa, formed by the 2017 merger of Spain's Gamesa
with the wind division of Germany's Siemens, is
looking to make money out of its site development business.
The bidders will be vying for a pipeline of projects with
capacity of more than 3 gigawatts (GW) in Spain, France, Italy
and Greece, and a team of some 50 staff, the sources said.
In November, Chief Executive Andreas Nauen had said the
company was "seeking to monetise" its development pipeline.
The sources said the company had hired Bank of America to
advise it on ways to do so and bidders were lining up to submit
non-binding offers on Friday.
Siemens Gamesa declined to comment.
The deal value would likely be worth 250 million to 300
million euros, the sources said, although two of them said the
company could pocket as much as 500 million euros for the
Among companies who may be interested in bidding are
renewable energy developer Cubico, Spanish energy firms Repsol
and Naturgy, the infrastructure and real
assets arm of global giant Macquarie, and utilities
including Portugal's EDP, Austria's Verbund,
and Spanish peer Iberdrola, the sources said.
Cubico, Repsol, EDP, Naturgy, Macquarie and Iberdrola
declined to comment. Verbund did not immediately respond to
requests for comment.
Appetite for these types of assets was made clear when
French buyers Engie and Credit Agricole snapped up Spanish
renewable developer Eolia for 2 billion euros.
Fellow turbine maker Nordex netted 402.5 million euros from
selling its project pipeline https://www.reuters.com/article/nordexpipeline-ma-rwe-idAFL8N2F516Y
to German utility RWE last year.
Siemens Gamesa's parent group Siemens Energy
became frustrated with the turbine unit's financial woes this
summer and considered taking control of the 33% it does not
Siemens Energy CEO Christian Bruch said in November that
Siemens Gamesa had made noticeable progress in the turnaround
($1 = 0.8835 euros)
(Reporting by Isla Binnie and Emma-Victoria Farr; Additional
reporting by Christoph Steitz in Frankfurt and Sergio Goncalves
in Lisbon; Editing by Edmund Blair)