Zara founder Ortega raises a bet on renewables with a potential Repsol deal. Amancio Ortega, the creator of Inditex (ITX.MC), is pursuing renewable energy with his investment business, Pontegadea. The two are nearing an agreement for Repsol (REP.MC) to purchase a 49% interest in its solar power facilities and wind farms in Spain, two people familiar with the negotiations told Reuters.
With the possible acquisition, Pontegadea’s renewable energy investments would increase. The millionaire owns a fashion retailer in Spain. His family office has already acquired minority interests in energy assets, including a 5% share in Enagas Renovable, the renewable and hydrogen division of Spanish gas grid operator Enagas (ENAG.MC).
According to reports, the transaction value of the 600 megawatt-capacity Repsol renewable projects offered for sale is around $747.18 million, or 700 million euros. According to one of the sources, the deal might be reached as early as next week.
A representative for Repsol declined to comment. A Pontegadea representative stated, “As usual, we do not have any comments on rumors about market operations while they are open.”
The agreement is consistent with Repsol’s plan to sell minority holdings in renewable projects to finance its transition from oil and gas to renewable energy. Other businesses are using similar strategies, such as the Spanish utility Iberdrola (IBE.MC), raising money by selling shares in more developed projects to invest in new ones.
The Spanish oil corporation sold Pontegadea shares in other projects. For 245 million euros in 2021, Repsol sold Pontegadea a 49% share in a different wind farm.
Primarily due to dividends from Inditex, Pontegadea reported a net profit of 2 billion euros last year, up from 1.6 billion euros in 2021.
