Scatec Solar is developing solar power plants all over the world and has become a favorite in the stock market. The share has risen 76 percent so far this year.
The company now announces that it has signed a binding agreement to buy all the shares in SN Power from state-owned Norfund for 1.166 billion dollars, corresponding to 10.9 billion kroner.
SN Power is best known for the production of hydropower.
Changes name
As a result of the acquisition, Scatec Solar will now change its name to only Scatec as it becomes a broader energy company.
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«The acquisition is an important part of Scatec Solar’s expanded growth strategy, which includes a broader investment in hydropower, wind power and energy storage in addition to solar energy. The new company will have a unique portfolio of power plants, a broad geographical presence and an attractive portfolio of new project opportunities “, it is stated in the announcement from Scatec.
– Hydropower and solar energy complement each other by providing opportunities for the sale of additional services and optimization of the supply of power from various energy sources. We also see great project opportunities in new growth markets in South-East Asia and southern Africa, in addition to access to projects with liquid solar energy in combination with hydropower, says Raymond Carlsen, CEO of Scatec Solar in a statement.
Receives 6.6 billion in acquisition financing
The acquisition is financed through a combination of available cash from the balance sheet of Scatec Solar, a seller credit of $ 200 million, a term loan of $ 150 million and $ 700 million in acquisition financing from Nordea, DNB, BNP Paribas and Swedbank.
The acquisition financing is available 12 months after the transaction has been completed and is expected to be refinanced through debt and equity.
Earlier this spring, Scatec Solar raised almost two billion kroner in a private placement.
According to the company, the acquisition is expected to deliver a return far above Scatec Solar’s cost of equity and that it will be highly profitable on underlying earnings in 2020 and beyond.(Terms)Copyright Dagens Næringsliv AS and / or our suppliers. We would like you to share our cases using a link, which leads directly to our pages. Copying or other form of use of all or part of the content, can only take place with written permission or as permitted by law. For further terms see here.
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