December 5 (Renewables Now) - BP Plc (LON:BP) will lift its shareholding in Lightsource BP to 50% from 43% in a deal that it says will enhance the solar developer’s growth.
The move will see Lightsource BP issue new equity to BP and thus create “a simplified 50:50 joint venture structure,” Lightsource BP said on Thursday. While it did not give financial details about the transaction, it said the deal will provide it with funds to support its goal of having 10 GW of developed assets by end-2023.
Under the equalised shareholding structure, Lightsource BP’s remaining 50% will continue to be held by its management and staff. The funds from BP’s investment will be immediately available to the company.
The UK oil and gas giant bought the 43% stake in Lightsource Renewable Energy Holdings Ltd back in 2017 and subsequently changed its name to Lightsource BP, making grid-connected plants and corporate power purchase agreements (PPAs) a focus for the business. Since then, the company has built a development pipeline of over 12 GW, according to the statement.