REG - Aquila Eur Renwables Aquila Euro Rnw-AERI - Disposal of Norwegian Wind Farm

Aquila European RenewablesAnnouncement

05/09/2024 07:00

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RNS Number : 9719C  Aquila European Renewables PLC  05 September 2024

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 
(#_ftn1) .

 

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
(http://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.

 

 1  (#_ftnref1) The actual purchase price received will be subject to certain
adjustments depending on the date of closing.

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