Acciona Energia considers sale of $1.1 billion hydro portfolio, sources say

By Andres Gonzalez

LONDON (Reuters) - Spanish power company Acciona Energia is considering a sale of its hydroelectric business, valued at 1 billion euros ($1.1 billion), according to two sources familiar with the matter.

The company has said that selling renewable assets is part of its strategy to strengthen its balance sheet.

Acciona Energia has lined up bankers to contact potential buyers for the business, consisting of approximately 650 megawatts (MW) of hydro assets, the sources said.

The company sold 175 MW of hydro installed capacity for 287 million euros earlier this year.

Acciona Energia declined to comment.

In July, Acciona Energia's parent company chairman, Jose Manuel Entrecanales, said the firm had received formal offers for many of its assets. He added it would "prioritise those deals where we see the best value and strategic fit".

Acciona Energia expects to receive non-binding offers for its hydropower business at the beginning of November, the people said.

($1 = 0.9204 euros)

(Reporting by Andres Gonzalez; Editing by Mark Potter)