The price is 700 million euros – PPC strengthens its development strategy in Southeast Europe – Diversifies the RES portfolio
PPC entered into a binding purchase and sale agreement with Evryo Group, which belongs to funds controlled by Macquarie Asset Management.
Based on the agreement, PPC acquires Evryo Group’s significant portfolio in Romania, which includes projects with a total installed capacity of 629MW in operation and approximately 145MW under development.
The transaction corresponds to Enterprise Value approximately €700 millionwhich is equivalent to previous market transactions and with the redemption price subject to the usual adjustments.
As stated in a related announcement, the acquisition further strengthens the PPC Group’s development strategy in Romania and Southeast Europe, through the addition of a significant RES portfolio in operation, which includes 600MW onshore wind farm projects, 22MW small hydroelectric plants, a floating solar farm 1MW, 6MW of battery energy storage systems, and approximately 145MW under development. With the completion of the agreement, the RES portfolio in operation of PPC in Romania will be doubled and the total installed capacity of the PPC Group will reach 5.3GW.
PPC Group has extensive experience in renewable energy operations, with a significant portfolio of developing mainly photovoltaic projects in Greece. This agreement expands and diversifies the Group’s activities in RES as large wind power projects and hydroelectric plants are added in the Romanian region.
The financing of the acquisition is structured in such a way that it is in line with the financial policy of the PPC Group and remains within the target regarding the maximum leverage limit of the Group. Upon completion of the transaction, PPC Group will add EBITDA of approximately €100 million annually.
The President and CEO of PPC Group, Mr. Georgios Stasis, stated: “This acquisition is a new important step for PPC Group’s overall development strategy in Southeast Europe. We are accelerating the development of renewable energy production in Romania by doubling the portfolio of operational RES and, more importantly, with wind and hydro projects, further diversifying our mix, with projects located in the most sought-after areas of Romania, with high wind potential. Our regional renewable energy strategy aims to generate energy in attractive markets, with a technologically diversified portfolio. South East Europe is an increasingly interconnected market with converging electricity prices and therefore value can be created from synergies in trading, supply and risk diversification.”
Citigroup Global Markets Europe AG and Euroxx Securities SA are acting as financial advisors and Clifford Chance as legal advisor to PPC Group for the said acquisition.
Completion of the acquisition is expected to take place by the last quarter of 2024 and is subject to certain conditions customary for this type of transaction, including, but not limited to, the relevant permission from the relevant Competition Authority.
Source: Skai
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