Iberdrola buys out partner in Italian wind JV

Api Holding SpA has agreed to sell its 50% shares of the joint venture Societa Energie Rinnovabili (SER) to IBERDROLA Renewables, which now is the wholly owner. Societa Energie Rinnovabili was established nine years ago, to develop, build and operate 350 MW of wind farms in Italy.

This joint venture planned to start up a total of seven wind power projects between 2008 and 2009, located in Sicily and the Puglia region, with an investment of approximately €500 million (US$550 million).

The deal is worth about €190 million (US$208 million) and API group, which took its first steps in the wind energy sector in 2000, will return to its core business, which is related on supply, transport, refining and distribution of crude oil refined products.

Api Holding SpA group, controlled by Brachetti Peretti family, still maintains certain portfolio in the solar and biomass industries with 11 MW in Marches and 70 MW in Calabria respectively.

Ugo Brachetti Peretti, CEO of Api, said:

"The sale to Iberdrola is not related to our turnaround, it is rather an opportunity to return to invest on the oil industry and our distribution network, considering acquisitions in the medium term, or forms of association with a view to strengthening our core business. The goal is to increase our current market share."

With the transaction the group budget for 2015 shows that just recorded a value of gross operating margin of €212 million (+43%). It also improves profit before tax at €26.9 million compared to a negative €102 million in 2014.