Etrion Corporation recently completed its acquisition of over the 30MW in Italian solar power projects for cash consideration of around €45 million and the engagement of the related nonrecourse loan facilities. The plants are anticipated to produce more than 55 million kWh of electricity annually with an estimated €20 million in cash flow.
Marco Northland, CEO of Etrion commented, “We are very excited about this potential acquisition to strengthen our solar PV portfolio in Italy. If completed, the acquisition would more than triple the size of our company in terms of installed capacity, and it would make us one of the major solar power players in Italy. We look forward to closing the transaction soon.”
All the acquired projects are either operational or near-operational ground-based solar PV power plants that benefit from the 2009 feed-in-tariff of €0.353 per kWh or the 2010 feed-in-tariff of €0.346 per kWh plus a market price of around €0.08 per kWh.
The final purchase of the solar projects hinges on the completion of negotiations for a definitive agreement, which is expected by July and will include standard closing conditions. Etrion will fund its purchase through a LIBOR plus 3% bridge loan from its major shareholder, Lundin Petroleum, after regulatory approval.