Irish independent power producer (IPP) Alternus Energy has closed a business combination agreement with Clean Earth Acquisitions Corp, a special purpose acquisition company (SPAC), that will enable its expansion in the US.
Under the agreement, the IPP will transfer its equity ownership in almost all of its subsidiaries in exchange for up to 90 million newly issued shares in Clean Earth, 55 million at closing and up to 35 million shares subject to certain earn-out provisions. Alternus will own around 64% of Clean Earth at closing as a result.
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The combined company is expected to have an initial value of US$863 million with an operating portfolio of 168MW and a 649MW development pipeline, owned by the Irish IPP. Add to this 845MW of contracted acquisitions and 800MW of solar PV that Alternus has exclusive rights to purchase.
Moreover, Alternus Energy aims to own and operate up to 3.5GW of solar PV assets across Europe and the US by the end of 2025.
Vincent Browne, chairman and CEO at Alternus, said: “We expect that this proposed transaction will leave Alternus well-positioned and well-capitalised to continue developing and/or acquiring, installing and operating renewable energy assets across Europe and also now in the United States.”
Browne will lead the newly combined company, while Clean Earth intends to change its name to Alternus Clean Energy.
The combination of the companies, along with a Nasdaq listing and an anticipated access to new equity as well as probable lower cost debt capital could further help the expansion and accelerated growth of the company’s development portfolio, said Aaron Ratner, CEO of Clean Earth.
The transaction between both companies is expected to close in the first quarter of 2023.