09 Feb Abengoa sells its shares of solar thermal power plant Shams-1
Abengoa (MCE: ABG.B/P SM /NASDAQ: ABGB), the international company that applies innovative technology solutions for sustainability in the energy and environment sectors, has sold to Masdar its share of Shams-1, the 100 MW solar thermal power plant developed by the Company in Abu Dhabi (United Arab Emirates). Abengoa previously had a stake in the plant as part of a joint venture together with the companies Total and Masdar.
This transaction is part of the disinvestment policy previously announced by Abengoa and is one of several transactions recently made. Additionally, Abengoa has completed the sale of former Abengoa offices in Madrid, located on Martinez Campos Street. The Company has also received offers for the 8,400 m2 building in Seville that once served as its headquarters, as well as for other real estate assets and pieces of land owned by the Company, located in various geographic regions.
As a whole, offers received by Abengoa for non-strategic assets exceed 100 million euros, including payment for Shams-1, the offices in Madrid and other non-strategic assets. The company expects to close further transactions in the coming days. These assets were included in the previously announced short term disinvestment plan.
These operations along with other disposals in advanced stages of negotiations plus necessary compromise negotiations with its various stakeholders (banks, bondholders, other financial creditors and suppliers), will allow the Company to advance towards viability.
Abengoa, advised by Alvarez & Marsal, is working on a viability plan that was presented to the Board of directors the last week of January 2016. In addition to continuing the disinvestment policy, the plan will allow the Company to simplify its structure, reduce costs and optimize its resources.
José Domínguez Abascal, Chairman of Abengoa, affirms that “income from the sale of assets will be used to cover expenses of the Company in order to face the negotiation process under Article 5 bis of the Spanish Insolvency Law”. “We are committed to transforming the business in order to adapt to the changing environment, while keeping characteristic aspects of the Company like cutting-edge technology and innovation which have defined Abengoa since its very beginning,” highlights Dominguez Abascal.