A group of investors led by Magnum Capital are paying Babcock & Brown EUR1.2bn (USD1.5bn) for Enersis, the largest wind power business in Portugal with 25% of the country’s wind capacity. Babcock acquired the firm in December 2005 for EUR490m (USD579m). Enersis operates 515MW of wind farms with a further 156MW under construction.

Private equity firm Magnum is providing 65% of the financing for the deal and raising the rest from Espirito Santo Capital and cleantech private equity fund Fjord Capital. Magnum says that to date the deal is the largest transaction in the European wind sector from a private equity firm.

Australian asset manager Babcock & Brown is selling Enersis to help pay off AUD9.6bn (USD6.2bn) in debts.