Elsewedy Electric, an integrated energy and infrastructure solution provider, has entered into a purchase agreement with R.F. Energy, a subsidiary of F.G Europe, to acquire 100% stake in four Greece-based companies for EUR 55 mn, Invest-Gate reports.
The purchase deal includes the acquisition of three wind energy companies and another firm owning a hydroelectric power project. It will be funded by a ring-fenced finance facility from National Bank of Greece (NBG), covering up to 75% of the value, while the remaining 25% will be received from shareholders’ equity, Elsewedy said in a press statement on June 16.
The agreement is set to be completed by June 28 and is subject to the normal terms and conditions for completing similar transactions, the firm added, noting that the total capacity of the four companies reaches 63.6 megawatts.
“The transaction is considered a remarkable milestone for the group for expanding into the renewable energy sector and also including wind and hydro-electric energy under Elsewedy Electric’s umbrella, with a geographical expansion into Europe,” Elsewedy Electric’s President and CEO Ahmed Elsewedy was quoted as saying.
The CEO further elaborated, “Elsewedy Electric is now one of the top renewable energy operators in Greece … As part of the company’s corporate social responsibility, we will always be seeking investment opportunities that provide sustainable solutions and added-value for the general good of people.”
Elsewedy underlined that this investment marks the company’s second independent power producer (IPP) project in Europe, Middle East, and Africa (EMEA) region, following Benban Solar Power Plant in Aswan, Egypt.
According to the statement, the assets generate enough energy to power approximately 34,000 homes, with an equivalent carbon dioxide footprint of 102,000 tons. They benefit from a fixed tariff for all of the generated capacity under power-purchase agreements (PPA) for tenors, varying between 12 to 20 years.
During Q1 2019, Elsewedy Electric logged a net profit of EGP 955.51 mn, compared to EGP 1.431 bn in the year-ago period.