Spain - Acciona pays 1.37 bln euros for wind power

Acciona SA said is targeting 25 pct share of Spain's renewable energy sector by 2010, with 20,155 megawatts of installed capacity, following its 1.37 bln eur acquisition of the Corporacion Eolica SL (CESA) wind farm. In a presentation, the Spanish construction and energy group said it had 18 pct combined market share in 2005, including CESA's assets, compared to leading renewable energy operator Iberdrola SA with 32 pct. According to analysts consulted by Acciona, energy activities are now estimated to account for 44 pct of group EBITDA in 2006 and 16 pct of revenues, while infrastructure activities will account for 23 pct of EBITDA and 52 pct of sales, it said.

CESA is expected to post 36 pct compound annual growth in EBITDA over 2006-2008, with EBITDA seen at 94 mln eur in 2006, 131 mln in 2007 and 175 mln in 2008, on 33 pct compound annual growth in revenues. CESA's revenues are seen at 119 mln in 2006, 160 mln in 2007 and 211 mln in 2008. Net profit at the new unit is expected to reach 12 mln eur in 2006, 22 mln in 2007 and 39 mln in 2008, representing CAGR of 80 pct over the three year period, it added. Analysts are forecasting that CESA buy will have a 5.3 pct positive impact on Acciona group EPS this year, rising to 8.2 pct in 2007 and 10.9 pct in 2008.