Aquila European Renewables has entered into a sale and purchase agreement with Sunnhordland Kraftlag AS to sell its 25.9% interest in the Tesla wind farm for about €27.1m.
Tesla is a 150 MW operating onshore wind farm located in Southern Norway, which was bought by Aquila European in 2019. The buyer is a Norwegian energy company with a long history of developing and operating hydropower plants. Sunnhordland Kraftlag’s hydropower portfolio generates approximately 2,700 GWh in production each year.
The sale price represents a 10.8% premium to the fair value of Tesla in Aquila European’s 30 June 2024 NAV. The majority of the sale proceeds will be used to fully repay the company’s Revolving Credit Facility (RCF). That would reduce total leverage from 36.3% to 31.7%. The sale transaction is subject to the grant of certain regulatory and governmental approvals, with completion of the sale expected to occur by October 2024.
Chairman Ian Nolan commented: “The sale is a further sign of the board’s ongoing commitment to secure greater appreciation of the value inherent in the portfolio. The board continues to explore a range of initiatives to help address the issues facing the listed renewable energy sector and secure recognition in the company’s share price of the underlying value of the company’s portfolio. Whilst it is pleasing to note the level of interest in this particular asset, and the uplift in valuation that is expected to be achieved, it is clear that different technologies in differing geographies display very variable levels of liquidity and pricing visibility. The board continues to assess these issues and others as part of its ongoing considerations and looks forward to updating the market further in due course.”
AERI / AERS : Aquila European sells stake in Norwegian wind farm