Lithuania's Ignitis to separate renewables ops into new subsidiary

Lithuanian renewables-focused utility Ignitis Group (VSE:IGN1L), or AB Ignitis Grupe, intends to set up a new renewable energy company that will have close to EUR 750 million (USD 912.1m) of assets, it said on Thursday.

The plan has been given the green light by the company’s management board. As part of the move, Ignitis will consolidate all operating and under-development wind, solar, waste and biofuel projects into a new company dubbed Ignitis Renewables. The latter will not incorporate the company’s hydropower operations as they will be handled through Ignitis Gamyba.

Ignitis Renewables, to be 100% owned by Ignitis Group, will manage all renewable energy projects that the group will acquire and develop in the future.

The reorganisation is expected to enable Ignitis Group to be more competitive in the green energy market and broaden its capabilities in this field, the company said. Furthermore, it will facilitate the execution of its asset rotation plan, forming part of its 2021-2024 strategy, to sell up to 49% of completed power generation projects and thus recycle capital.

(EUR 1.0 = USD 1.216)

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