Valentia, Eastasia to invest USD 215m in solar tower co EnviroMission

Japanese fund Valentia Co Ltd has partnered with construction, services and commodities firm Eastasia Group to invest as much as USD 215 million (EUR 196.6m) in EnviroMission Ltd (ASX:EVM) and its solar tower projects.

Valentia and Eastasia also intend to enter into formal agreements with EnviroMission in January for the solar tower development rights for Russia and China.

As previously announced, Valentia had committed to invest about USD 110 million in the Australian solar technology firm and its projects. It updated its proposal due to an "overwhelming level of interest" for the investment in EnviroMission and solar tower development.

As part of the Valentia-Eastasia plan, an initial co-investment of USD 15 million is to be completed by March 7, 2016, subject to approval by EnviroMission shareholders at an extraordinary general meeting in February. The investment will be made in the form of a 12-month note, convertible into up to 75 million EnviroMission shares and 18.75 million options.

The updated proposal also includes a further investment of USD 200 million as equity in EnviroMission’s 200-MW solar tower project in Arizona and/or equity in the company itself. This could be completed by the end of June, if approved at an extraordinary general meeting that is to take place no later than April 2016.

"Funds will be earmarked for the development of the Arizona Solar Tower and will provide the necessary funds to take that development to project finance stage," said EnviroMission.

Negotiations on the structure of the USD-200-million investment are in progress. They will be finalised in the first quarter of 2016.

(USD 1 = EUR 0.914)

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