Ellomay sheds 49% of 300-MW solar project in Spain

Solar park in Spain. Author: Som Energia Cooperativa. License: Creative Commons. Attribution 2.0 Generic

April 18 (Renewables Now) - Ellomay Luxembourg Holdings, a unit of Ellomay Capital Ltd (TASE:ELLO), will offload 49% of the 300-MWp Talasol solar project in Spain to a Capital Dynamics vehicle and Fond-ICO Infraestructuras II, FICC.

The two buyers will pay a total of EUR 16.1 million (USD 18.2m), subject to adjustments, for 49% of Talasol Solar SLU’s shares and will assume 49% of project-related debt. Additionally, they will take part in 49% of the equity requirements under the Spanish project’s financing agreement.

Following the transaction, each of the new partners will get a 24.5% stake in the target entity, while Ellomay Capital will own 51%.

The Talasol photovoltaic (PV) park will be installed at a site in the municipality of Talavan, Caceres, at an estimated total cost of between EUR 200 million and EUR 230 million. It will be financed by a Deutsche Bank-led group and will also be supported by the European Fund for Strategic Investments (EFSI). The plant is seen to enter into service in the first half of 2020.

The completion of the deal is subject to customary closing conditions, expected to be fulfilled by June 30, 2019. Upon its closing, 49% of Talasol's business will be transferred as of December 31, 2018.

"The entry of partners to Talasol, which is expected to be one of the largest photovoltaic projects in Europe, will mark the final milestone for financial closing and commencement of construction of the project, which will take place right after,” said Ran Fridrich, Ellomay’s CEO. He added that the move will allow the company to create an optimal ownership structure for the Talasol project.

(EUR 1.0 = USD 1.130)

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