ACS to launch IPO for renewables unit

Spanish infrastructure and energy developer, ACS, has announced plans to launch an initial public offering (IPO) of its renewable energy unit, which is expected to attract foreign institutional investors.

The business could be worth over €3.2 billion (US$4.26 billion) and it is aimed at being closed by the end of 2014. The business could include debt of around €2.63 billion.

ACS - Spain's biggest construction company- has already sold 442.5MW of Spanish wind power assets to Bridgepoint for €636.3 million.The current divestment bid reportedly encompasses 1059MW of capacity, 70% in Spain and mostly from wind, though also including 250MW of concentrated solar assets in Spain.

ACS wind power affiliates include Eyra, with 513MW of installed wind capacity in Spain, and Cobra, with extensive wind stakes in Latin America.

This plans shows the interest of ACS in selling part of the business which are not considered strategic for the company any longer.