May 16 (Renewables Now) - Renewable energy firm Alternus Energy Inc (OTCMKTS:ALTN) has completed the acquisition of 100% stakes in four out of five special purpose vehicles (SPVs) that own solar photovoltaic (PV) farms totalling 5.1 MW in Italy, it said Tuesday.
The acquisition of the fifth SPV is expected to take place at the end of June.
The Italian portfolio consists of seven operating PV farms which will increase Alternus' solar capacity to 29.1 MW in Europe.
The sale and purchase agreement with the vendors, Risen Energy PV Holding Italy GmbH and Risen Energy (HongKong) Co Limited, specifies a cash payment of approximately USD 8.1 million (EUR 7.2m) for the whole portfolio. Of this amount, USD 1.5 million is held back pending closing of the final SPV deal, while USD 0.4 million is held in escrow against certain tax open items and any unexpected items not found in the due diligence process.
Alternus will fund the transaction with its existing credit facility.
The assets, which have 12 years left on their contracts, currently generate more than USD 1.5 million in annual revenues at over 85% gross margins. The new owner intends to lift their output with some remedial work in order to further increase profitability.
(USD 1.0 = EUR 0.89)