Spain’s Ignis agrees to sell stake to Egypt’s EFG Hermes for €625 million

Spanish power generation company Ignis Energia has agreed to sell an unspecified stake to Egyptian financial services company EFG Hermes Holding for a total investment of over €625 million ($727.3 million).

The deal will enable Ignis to own and operate a larger share of its projects in development, whilst pursuing a strategy of becoming a fully integrated renewable independent power producer (IPP) in Spain and abroad, the company said in a statement.

The capital injections will be made incrementally, subject to conditions, Ignis added.

The funds will be channelled through renewable energy platform Vortex Energy, which is sponsored by EFG Hermes’ private equity arm and is run by Luxembourg-based Beaufort Investments. Vortex will invest through its newly-launched fourth fund, in addition to co-investors.

The deal still requires regulatory approval in Spain.