Greek petroleum refiner Motor Oil (Hellas) Corinth Refineries said it has granted a permission to its unit Motor Oil Renewable Energy Single Member (MORE) to proceed with a complex transaction with infrastructure group Ellaktor that will result in the creation of a joint renewable energy business valued at 1 billion euro ($1.02 billion).
As announced in early May, MORE plans to take a 75% interest in a new entity that will eventually merge with a spin-off from Ellaktor holding the latter's renewables portfolio and project pipeline, Motor Oil (Hellas) Corinth Refineries said in a statement on Thursday.
Ellaktor will take the remaining 25% in the joint venture that will hold 493 MW of operating renewable energy capacity plus a project pipeline exceeding 1.6 GW, which also includes energy storage.
In order to acquire the majority stake in the new holding company, MORE will pay 330 million euro in cash. Ellaktor will earn its own share by contributing in kind a 14% stake in its renewables arm post-separation.
The new holding company will then seek to obtain a 350-million-euro loan to facilitate the purchase of the remaining 86% interest in the renewables business spun-off from Ellaktor for a total consideration of 680 million euro, according to the statement.
Back in May when they reached an in-principle framework agreement for the renewables partnership, Motor Oil also acquired a 29.87% stake in Ellaktor from Kiloman Holdings Ltd and Greenhill Investments Ltd for a total of 182 million euro.
($ = 0.982 euro)
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