Swedish onshore wind farms developer Arise AB (STO:ARISE) has agreed to acquire 51% of Pohjan Voima Oy, a Finnish onshore wind and solar company with a project portfolio of 1.7 GW.
The purchase price for the controlling stake is up to EUR 30 million (USD 31.6m), a press release said on Tuesday.
Under the terms of the investment agreement, Arise will pay EUR 12 million at closing, plus up to EUR 18 million more upon the achievement of certain project milestones. Completion of the deal is expected in April.
The equity investment comes as part of a broader partnership agreement that envisages financing from Arise to continue developing Pohjan Voima’s portfolio as well as the provision of advisory services.
Pohjan Voima operates a portfolio of 1 GW of wind projects at different stages of land use planning and environmental impact assessment and 700 MW of wind and solar projects at the pre-planning stage. The company is also considering potential future battery storage opportunities.
Existing shareholders of the Finnish firm, including its founders and local insurer LocalTapiola, will remain invested in the business upon completion of the deal with Arise.
Arise is already present in Finland through its asset management business and has a 219-MW wind power asset management agreement with US investment giant BlackRock which was inked in April 2022.
(EUR 1 = USD 1.055)
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