Romanian power supplier and distributor Electrica [BSE:EL] said that it has signed an agreement to buy Stanesti photovoltaic plant in Giurgiu county by acquiring the plant's owner through its subsidiary Electrica Furnizare.
Electrica Furnizare signed an agreement with Cyprus-based company Raylexo Limited and local company Long Bridge Management si Administrare for the acquisition of all shares in Long Bridge Milenium, the company which owns the solar plant, Electrica said in a filing to the Bucharest Stock Exchange (BVB) on Tuesday evening.
Closing of the transaction and the transfer of shares’ ownership to Electrica Furnizare are subject to fulfilment of the conditions precedent agreed by the parties as well as to the relevant formalities, Electrica said, adding that the purchase price will be determined at the closing of the transaction, pursuant to the terms of the share purchase agreement.
"This transaction is the first step towards the envisaged target of vertical development of Electrica Group by entering the market for electricity generation, in particular from renewable sources, by acquiring wind and/or photovoltaic farms," Electrica CEO Georgeta Corina Popescu said.
Stanesti solar farm has an installed capacity of 7.5 MW, while its operatonal power is limited at 6.8 MW. It was built between October 2012 and January 2013 and has been delivering electricity into the national grid since February 2013.
Earlier this month, Electrica announced that it is exploring the possibility to bid for the local assets of Czech energy group CEZ in a potential tie-up with the Energy Shareholdings Administration Association (SAPE) and state-owned hydro power producer Hidroelectrica.
Electrica's shares traded 0.49% higher at 10.35 lei ($2.41 /2.14 euro) as at 1018 CET on Wednesday on the BVB.
The Romanian state owns 48.79% of Electrica, while 46.73% is owned by legal entities. The rest is owned by individuals, according to information posted on the BVB's website.
(1 euro= 4.8428 lei)
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