Nov 26, 2013 - Norwegian firm EAM Solar ASA today said it has inked a binding term sheet to buy eight companies that own 30 MW of solar power plants in the Puglia region of southern Italy.
The buyer explained that the acquisition is based on an enterprise value of EUR 115 million (USD 155.7m) for the acquired portfolio of 31 solar system. Total of EUR 73.4 million is existing debt to be assumed by EAM, while the latter will pay EUR 41.6 million in cash using available resources and new equity. The final acquisition price will also include earn-outs and a performance guarantee.
The power plants, which have an average annual electricity production capacity of approximately 44 GWh, have been in operation since 2011. They have 20-year power sale contracts with local electric services authority Gestore Servizi Energetici (GSE) under Italy's feed-in tariff scheme.
The buyer, which currently owns four solar plants with a combined capacity of 6.6 MW, expects an annual revenue increase from approximately EUR 3.5 million to some EUR 20 million thanks to the new plants.
The acquisition, to be closed next month, hinges upon certain conditions such as satisfactory confirmatory due diligence, continuation of existing financing contracts and final approval by the EAM Solar board.
(EUR 1 = USD 1.354)
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