Aquila European Renewables has entered into a transaction to sell its stake in a 150MW operational wind farm in southern Norway.
The sale and purchase agreement with Sunnhordland Kraftlag (SKL) covers the sale of Aquila’s 25.9% interest in the Tesla wind farm for €27m.
Aquila acquired the minority interest in the site in 2019.
SKL is a Norwegian energy company with a long history of developing and operating hydropower plants.
The sale price represents a 10.8% premium to Aquila’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 which is drawn to €26.1m (excluding bank guarantees of €2.8m, which will remain in place).
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.
Aquila chairman Ian Nolan said: “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.”