THIS
ANNOUNCEMENT CONTAINS INSIDE INFORMATION.
For
immediate release
5 September 2024
Aquila European Renewables
plc
Disposal of Norwegian wind
farm at a premium to carrying value
Aquila European Renewables
plc ("AER" or "the Company"), the London-listed
investment company advised by Aquila Capital Investmentgesellschaft
mbH ("Investment Adviser"), today announces that it has entered
into a sale and purchase agreement with Sunnhordland Kraftlag AS
("SKL") to sell its 25.9% interest in Tesla for consideration of
approximately EUR 27.1 million[1].
Tesla is a 150 MW operating onshore
wind farm located in Southern Norway, which was acquired by the
Company in 2019. The buyer, SKL is a Norwegian energy company with
a long history of developing and operating hydropower plants. SKL's
hydropower portfolio generates approximately 2,700 GWh in
production per annum.
The sale price represents a 10.8%
premium to the Company's fair value of Tesla as at 30 June 2024.
The majority of the sale proceeds will be used to fully repay the
Company's Revolving Credit Facility ("RCF") which is currently
drawn to EUR 26.1 million (excluding bank guarantees of EUR 2.8
million, which will remain in place). Based on AER's net asset
value as at 30 June 2024 and gearing levels, AER's total leverage
is expected to reduce from 36.3% to 31.7% on a pro forma basis as a
result of the sale and subsequent repayment of the RCF. 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.
Ian Nolan, Chairman, of the Company 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."
ENDS
For
further information please contact:
Deutsche Numis (Financial Adviser and Broker) +44 020 7260
1000
David
Benda
Stuart Ord
George Shiel
Media contacts
Edelman Smithfield
Ged Brumby +447540 412
301
Hamza Ali +447976 308 914
Apex Listed Companies Services (UK) Limited (Company
Secretary) +44 020 3327 9720
NOTES
About AER
The objective of Aquila European
Renewables plc is to provide investors with an attractive
long-term, income-based return in EUR through a diversified
portfolio of onshore wind, solar PV and hydropower investments
across continental Europe and Ireland. As a result of the
diversification of energy generation technologies, the seasonal
production patterns of these asset types complement each other,
providing a balanced cash flow profile, while the geographic
diversification serves to reduce exposure to any one single energy
market. In addition, a balance is maintained between government
supported revenues, fixed price power purchase agreements and
market power price risk.
Further details can be found
at: www.aquila-european-renewables.com
LEI Number:
213800UKH1TZIC9ZRP41
Inside
Information
The information contained within
this announcement is deemed by Aquila European Renewables
plc to constitute inside information as stipulated under the
Market Abuse Regulations (EU) No.596/2014 (as it forms part of UK
domestic law by virtue of the European Union (Withdrawal)
Act 2018). On the publication of this announcement via
a Regulatory Information Service, such information is now
considered to be in the public domain.
The person responsible for making
this announcement is Jennifer Thompson of Apex
Listed Companies Services (UK) Limited, the Company
Secretary.