SAY SM acquires 95MW in wind, New TP is €11.70
Saeta Yield agreed to acquire from Corporación América and Grupo San José (GSJ SM) two wind parks in Uruguay for approximately US$65mn. The electricity is sold to the grid company UTE, owned by the State, via a PPA agreement that expires in 21 years. Saeta will provide details on the incremental CAFD at the closing. Nonetheless, the company claims that the acquisition is value and CAFD accretive from the first year, a positive. We assume an incremental CAFD of €6.1mn driving the expected DPS up €0.07 from €0.75 to €0.82.
Our YE2016 target price is adjusted from €12.21 to €11.70 on a combination of (1) eliminating the dividends paid last year and (2) adding the expected incremental CAFD from the two new plants.
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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