European and Chinese Power Utilities look to Spinoff their Renewable Arms through IPOs

Italy largest power utility Enel and giant Chinese utilities Huaneng and Datang Group are looking to spinoff their Renewable Energy Arms through IPOs.Note Enel has been looking to raise money to reduce it massive 51 billion euro debt burden and has been trying to offload its Green Energy Subsidiary for quite a while now.Enel is also talking with sovereign wealth funds in order to divest a portion of Enel Green Power before its IPO which is planned in October.European and Chinese Power Utilities look to Spinoff their Renewable Arms through IPOs

Enel Seeks EU3 Billion From Green Power Sale, IPO – Bloomberg

Enel SpA Chief Executive Officer Fulvio Conti said he expects the company to raise “at least” 3 billion euros ($3.8 billion) from the sale of a minority stake in its Enel Green Power unit, less than his previous estimate.

The Rome-based company is in talks with sovereign wealth funds that may bid to buy a direct stake in the alternative energy unit of Italy’s biggest utility, Conti said today in an interview in Rimini, Italy. Enel will also sell part of Enel Green Power in October in what may be Europe’s biggest initial share sale since 2007.

China’s Huaneng and Datang Groups like Enel have been hit by the stock market volatility delaying the listing of their Renewable Energy subsidiaries.Both want to list the Green Energy Subsidiaries in HK and have already appointed investment bankers for this purpose.Around 1-2 Billion Dollars is hoped to be raised by these  companies.Note China is planning to commit upwards of $700 Billion in the next 10 years towards Clean Energy.These Giant Utilities are well entrenched to leverage sharp growth from the Stimulus Money.China’s other big utility Longyuan Group has already made a successful IPO of its Wind Energy Subsidiary which has reported good profits in the last quarter.Green Utilities are an easy profitable way to invest in India as well.Both India and China are going to sharply increase the Renewable Energy Generation through Subsidies and Renewable Portfolio Standards (RPS).The last time,big investors like Temasek etc. has shown strong interest in the Green Utility IPOs.Expect this time to be no different.

Two China new energy firms eye $2 billion in IPOs – Reuters

China Huaneng Group Corp and Datang Corp, the country’s top power producers, plan to float shares of their renewable energy units in Hong Kong in offerings that could raise over $2 billion, sources close to the deals said on Tuesday.

Huaneng’s renewable energy unit, Huaneng New Energy Industrial Co., plans to raise $1 billion to $1.5 billion in an initial public offering as early as October, sources close to the deal said on Tuesday.

Datang is planning to spin off China Datang Corp Renewable Power Co Ltd, which holds its wind and hydro assets.Datang’s IPO is being handled by Deutsche Bank and UBS.Datang Corp’s spinoff plan has already obtained approval from China’s National Energy Administration, the China Securities Journal reported in June.