Saeta Yield closes the lestenergia acquisition. New TP is €12.65
- Closes the acquisition of Lestenergia from ACS: 144 MW of wind plants in Portugal
- The metrics compare favourably with Saeta’s Spanish wind assets
- We expect the debt to be refinanced and the tenor increased, this is another positive
- Our target price increases to €12.65 per share
Our calculations consider an 11% cash yield and a 2.5% cost of debt (in-line with recent acquisitions), €30mn EBITDA and an incremental CAFD of €2.4mn. At an 85% payout, dividends would increase by €2mn or €0.03 per share. A €2mn increase in dividends per year between 2018e and 2033e pushes our target price up to €12.65 per share, from €12.39. We value positively this acquisition that demonstrates Saeta’s business model and equity story and reinforces our Buy recommendation.
Saeta Yield SA is a Spain-based company engaged in the utility industry. The Company specializes in the production of energy from renewable sources. Its business activities are divided into two segments: Solar thermal plants and Wind farms. The Solar thermal plants segment comprises solar energy generation installations in Spain. The Wind farms sector is responsible for the operation of a range of wind farms located in various countries, including Spain, Uruguay and Portugal. It cooperates with Actividades de Construccion y Servicios SA (ACS). Furthermore, the Company is a parent of a number of entities, such as Extresol 1 SL, Al-Andalus Wind Power SL, Parque Eolico Valcaire SL, which are active within the energy production sector.
Bankinter S.A. is a Spanish brokerage firm established in 1989. The company's line of business includes the provision of market research and trading services for Equity and Fixed Income products.
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