German’s E.ON to sell 80% stake in US wind farms to Canada’s Enbridge

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FRANKFURT: E.ON the German utility agrees to sell 80 percent stake in two wind farms in the United States to Canada’s Enbridge.
E.ON said the deal gives the two wind farms with a combined capacity of 505 megawatt (MW) an enterprise value of about $650 million.
Vern Yu Senior Vice-President of Corporate Development for Enbridge said this strategic investment provides a significant contribution to our growth targets in power generation Canada’s largest pipeline company.
Further the two wind parks Magic Valley 1 in Texas and Wildcat 1 in Indiana provide enough power for more than 120,000 households.
For more the deal is part of E.ON’s ongoing strategy to divest stakes in wind farms to infrastructure investors which are keen to snap up such assets due to their stable production and guaranteed returns.
In this deal E.ON needs the money to lower its 31 billion euro ($38.6 billion) debt pile and free up cash for investments into new business areas in a move to escape an overcapacity crisis that has pushed many of its coal and gas-fired plants into losses.