Mercapital in talks to sell Spanish wind farms

Spanish private equity firm Mercapital is to sell its stake in Spanish wind energy company CESA, according to reports in the Spanish press.

Spanish newspaper Cinco Dias has reported that Spanish private equity firm Mercapital and European buyout firm Bridgepoint are in talks with construction and energy company Acciona to sell wind energy company Corporación Eólica CESA (CESA).
 
The transaction is reported to be valued at around €1.5 billion ($1.84 billion), including €400 million in debt.
 
Mercapital confirmed that talks were underway but declined to comment further. Bridgepoint also declined to comment.
 
Mercapital is the architect of the deal. The firm said that it had acquired a 45 percent stake in CESA in 2001 through its €600 million 2001-vintage fund, Mercapital Spanish Private Equity Fund II.

London-based Bridgepoint acquired a 23.75 percent stake in CESA in May 2004 for an undisclosed amount. The transaction was made from its Bridgepoint Europe II fund, which closed on €2 billion ($2.45 billion) in 2002 and is now fully invested. The firm is currently investing from its €2.5 billion Bridgepoint Europe III fund, which reached its hard cap in May 2005.
 
According to Cinco Dias, Spanish private equity firm Gala Capital is also a shareholder in CESA, but will retain its stake.
 
Madrid-based CESA is a leading player in the European renewable energy sector, and operates wind farms throughout Andalucia and Castilla Leon.