REG-Endesa, S.A. Joint Venture

Endesa SAAnnouncement

26/07/2024 11:45

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Joint Venture

 

Borja Acha Besga

Secretary of the Board of Directors

Madrid, 25 July 2024

According to Article 226 of the Securities Exchange Law, Endesa, S.A. hereby
informs the following Inside Information (“Información Privilegiada”):

Endesa, S.A. (“Endesa”), through its wholly-owned subsidiary Enel Green
Power España, S.L., has signed an agreement with Masdar (“Abu Dhabi Future
Energy Company PJSC ”) a major renewable player, for the sale of a minority
stake of 49.99 percent of the share capital of the newly created company
“Enel Green Power España Solar 1, S.L.” (“EGPE Solar”), which owns
all of the photovoltaic solar installations in operation owned by Endesa in
Spain, with a total installed capacity of approximately 2GW.

The consideration agreed for the acquisition by Masdar of 49.99% of the share
capital of EGPE Solar, is 817 million euros, subject to customary adjustments
for these kinds of transactions. Accordingly, the Enterprise Value for the
entire share capital of EGPE Solar would be equal to approximately 1.7 billion
euros.

The transaction is part of a long-term agreement with Masdar and also
comprises the signing of contracts for the purchase of all the energy
generated by the plants owned by EGPE-Solar (PPA) by a company wholly owned by
Endesa for a period of fifteen years. It is also envisaged a potential future
Battery Energy Storage System (BESS) hybridization on the plant portfolio for
up to 0.5 GW additional capacity.

The agreement allows Endesa to maintain control and therefore integral
consolidation of EGPE Solar, and, consistently, it is not expected any impact
in the economic results of Endesa.

The closing of the transaction, which is expected to occur during the fourth
quarter of 2024, is subject to several conditions’ precedent customary for
these kinds of transactions, including clearance from the Spanish Government
on foreign investments.

The transaction is in line with the “Partnership” business model outlined
in the 2024-2026 Strategic Plan, which aims to seek partners in strategic
assets which allows to retain control while maximizing productivity and
returns on invested capital.

Enel Green Power España and Masdar also signed a non-binding Memorandum of
Understanding (MoU) to explore a potential alliance aimed at jointly
developing renewable generation projects in Spain.

The Secretary of the Board of Directors

Endesa, S.A. Registered offices: Calle Ribera del Loira, 60, Madrid.
Registered in the Mercantile Registry of Madrid, page M-6405, volume 323,
folio 1, Spanish Tax ID (C.I.F.) A28023430.

“This English-language version has been translated from the original issued
in Spanish and is provided for informational purposes only. In the event of
discrepancy, the Spanishlanguage version prevails.”



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Endesa, S.A.


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