Canada-based renewable energy company Jade Power Trust (TSXV:JPWR.UN) has reached an agreement to sell all of its renewable energy operating assets to Austrian peer Enery Power Holding GmbH for about EUR 71 million (USD 70.9m) in cash.
The proceeds from the divestment will be distributed to Jade Power’s investors with a portion to be deposited into escrow to cover certain potential claims. The company intends to delist from the Canadian TSX Venture Exchange (TSXV) upon completion of the deal, it said in a press release on Thursday.
Jade Power’s portfolio includes the East Wind and Baia wind parks in Romania with a total capacity of 62 MW, the PowerLIVE and Corabia solar parks with a combined capacity of 16.6 MW and 2.5 MW of hydropower plants, according to the company’s website.
Under the terms of the deal, Enery has agreed to take over all of the operating assets of the Canadian trust’s wholly-owned and operating subsidiaries in the Netherlands and Romania and also repay certain shareholder loans.
Both the assets sale agreement and the planned delisting are subject to the approval of Jade Power unitholders. The deal with Enery also hinges on regulatory clearances.
Jade Power was launched in 2014 to acquire, through its subsidiaries, interests in hydro, solar and wind assets in Romania, other countries in Europe and abroad that can provide stable cash flow to the trust and a suitable risk-adjusted return on investment.
The Canadian firm made its final acquisition in 2018 and since then it has gone from a net debt position of more than CAD 96.5 million (USD 73.4m/EUR 73.5m) to a positive cash position. With the deal announced Thursday, the trust has achieved a gross consideration more than double the per MW acquisition cost of its final purchase about four years ago.
Vienna-based Enery is a young renewable energy company currently producing almost 200 GWh of clean electricity, supplying almost 60,000 households across the region. The business was founded by Richard Konig, Lukas Nemec and independent power producer RP Global. It counts the Three Seas Initiative Investment Fund as a backer.
(EUR 1 = USD 0.998)
Choose your newsletter by Renewables Now. Join for free!
The East Wind Farm located in the Black Sea region of Romania. Image by Jade Power Trust.
