ERG announces the conclusion of an agreement with Renertia Gestion Solar II for the acquisition of the capital of Instalacion Photovoltaica Arericsol.
A photovoltaic plant
ERG acquires Instalacion Photovoltaica Arericsol which owns a photovoltaic plant. This one is located in Fregenal de la Sierra, in the autonomous community ofExtremadura, Spain. In addition, the solar power plant has an installed capacity of 25MWp.
The site, built by Instalacion Photovoltaica Arericsol during the year 2022, is currently in the test phase. Thus, the commissioning should take place at the beginning of 2023. In addition, it is located in one of the Spanish regions with the largest solar resources in Europe.
The Fregenal project will have an estimated total annual production of just over 50 GWh. This power represents more than 2000 equivalent hours and will avoid 24 tons of CO2 emissions per year. Paolo Merli, Managing Director of ERG, states:
“With the acquisition of the Fregenal photovoltaic plant, which is of very high quality, ERG consolidates its presence in Spain, continuing on the path of growth and technological diversification, in accordance with the Industrial Plan.”
A €30.4 million transaction for ERG
ERG, through its subsidiary ERG Spain Holdco, entered into the agreement with a Spanish venture capital company. It was Renertia Gestion Solar II. This company operates and invests in the development, construction and operation of renewable energy plants.
The enterprise value of the transaction amounts to €30.4 million. The expected Ebitda once fully operational amounts to approximately €3 million. The transaction is expected to close by the first quarter of 2023.
For the transaction ERG was assisted by Renergetica as advisor. ILF advisor ERG for the technical part. Finally, Ernst & Young and Montero Aramburu provided advice on the financial and administrative side.
