Israeli renewables company Ellomay Capital has sold 12 solar farms in Italy with combined capacity of over 22MW to an unnamed buyer.
The 12 projects total 22.6MW and were owned by 10 subsidiaries of Ellomay Capital.
The sale also included receivables arising from shareholder loans provided to the companies, Ellomay said.
It said that the purchase price was adjusted in connection with funds received by the company from the Italian subsidiaries during 2019 – approximately €2.3m – resulting in a cash purchase price of approximately €38.7m.
The sale and purchase agreement governing the sale of the Italian subsidiaries and the receivables includes customary representations and warranties and indemnification mechanisms, including specific indemnification for existing risks for a limited time in a non-material amount for the company.
Ellomay chief executive Ran Fridrich said: “The company is pleased to announce the sale of the company’s Italian PV portfolio at a very attractive price.
“The Italian PV portfolio was built during 2010-2013 and is based on a governmental feed-in-tariff.
“The acquisition of the portfolio was accomplished during the European financial crisis and was contrarian to market trends at the time.
“The company, led by Hemi Raphael, Ran Fridrich and Shlomo Nehama took a pioneering approach by allocating substantial amount of the company’s capital to PV projects in Italy.
“This enabled the company to build a stable portfolio with a strong cash flow and high return.
“Approximately half of the portfolio was acquired in the ready to build stage and was constructed by EPC contractors under the company’s supervision.
“The other half of the portfolio was acquired from German companies in receivership and required complex legal struggles that were managed by Hemi Raphael, an active director of the company.
“The company will use the proceeds of the sale for the redemption of its Series A Debentures and for investment in new PV projects that are expected to be built in Spain and Italy during 2020.”