Solar Millennium has now sold 50% of the stakes in the Ibersol power plant project to Ferrostaal. The 50MW parabolic trough power plant, located in the province of Extremadura, is the fourth power plant project to be developed by Solar Millennium in southern Spain.
Solar Millennium has also prepared the shareholder structure of the Ibersol project for the involvement of additional institutional investors. To this end, the company repurchased 25% of the Ibersol project stakes from the holding company Cross Capital, Zug (Switzerland).
Cross Capital had originally acquired these stakes indirectly from Solar Millennium in October 2009. By repurchasing the stake, Solar Millennium allows institutional investors to enter into the Ibersol project and to prepare a fund for private investors. According to the executive board’s assessment, the negotiations over the involvement of institutional investors are going well.
Thomas Mayer, spokesman of Solar Millennium’s executive board said, “With Ferrostaal investing in our next Spanish project, we remain true to our business model. With Ibersol, our fourth Spanish project is nearing the homestretch. Hence, Solar Millennium has significantly contributed to a global distribution of the parabolic trough technology.”
Following its investment in the project, Ferrostaal will take part in the project development costs and help finance the power plant components that have already been ordered. All other measures in the run-up to the Ibersol construction will be realized on a pro rata basis in the future. Flagsol, Cologne, the joint venture of Solar Millennium and Ferrostaal, will be largely responsible for engineering and construction.
The sale of stakes to Ferrostaal is still subject to approval by German antitrust authorities (Bundeskartellamt). In addition, the transfer of stakes in the Ibersol project company to a German holding company must be made legally effective according to Spanish law. Both of these procedures are expected to be completed by the end of September 2010 while the plant is expected to be connected to the grid after two and a half years of construction in spring 2013.
The transaction is subject to neither further board approvals nor other conditions precedent. The acquisition price has not been disclosed.