Romanian engineering and technology company Simtel Team [BSE:SMTL] said on Wednesday it has reached an agreement to buy a 51% stake in local provider of forecasting services for photovoltaic power plants and wind turbines ANT Power Energy for 1.5 million lei ($342,982/303,079 euro).
The transaction is pending approval at the company's extraordinary general meeting of shareholders scheduled on December 28, the company said in a press release.
The amount will be paid in two installments, with the first one amounting to 475,000 lei will be paid in cash immediately after the shareholders meeting. The second installment, amounting to about 1 million lei, will be converted into shares issued by Simtel, which will be settled within a share capital increase carried out for this purpose.
The minority stake of 49% in ANT Power Energy will be owned by the founder Adrian Tita, who will continue to be the company's CEO.
In terms of development plans, ANT Power Energy envisages the expansion of its team and services. At the same time, Simtel will support the company in increasing its market visibility, provide stability through access to funding, and support it in expanding its customer portfolio.
This partnership's main objective is to include ANT Power Energy in the next five years in the top three companies in Romania that carry out representation services on the energy markets on behalf of customers. ANT Power Energy is also considering a potential listing on Bucharest Bourse over the next three years.
"Our services are complementary to those provided by Simtel. Together we will function as a unitary whole that offers a full range of technical and economic services in a context which is favorable to the development of renewable energy," Adrian Tita said.
ANT Power Energy is a Romanian entrepreneurial company that mainly provides forecasting services for photovoltaic power plants. The company also provides representation services in the energy markets for customers that are photovoltaic producers, wind energy producers, and energy suppliers. ANT Power Energy's business portfolio includes over 120 power plants and six energy suppliers.
Simtel Team was founded in 2010 by Romanian entrepreneurs Iulian Nedea, Sergiu Bazarciuc and Radu Vilau. The company is listed on the AeRO market of the Bucharest Stock Exchange and operates in three business areas - telecommunications, green energy, and industrial automation.
Simtel's shares traded 3.72% lower at 23.3 lei on the Bucharest bourse as at 1046 CET on Wednesday.
(1 euro=4.9492 lei)
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