June 21 (Renewables Now) - SIMEC Atlantis Energy Ltd (LON:SAE) has decided to abandon the planned acquisition of UK mini-hydro developer and operator SIMEC Green Highland Renewables (SIMEC GHR) in its current form.
As announced in late November 2018, Atlantis had agreed to buy SIMEC GHR from its own largest shareholder SIMEC Energy for an enterprise value of GBP 124.7 million (USD 158m/EUR 140m).
Now, the independent board of directors of Atlantis has determined that an alternative transaction structure in relation to GHR would be in the interests of stockholders, having assessed the financing options available to acquire the firm. Atlantis said it is currently holding talks with its parent, a third-party infrastructure fund and project financiers in connection with that alternative transaction structure.
No further details were given.
SIMEC GHR has a portfolio of mini hydropower plants (HPPs) with a combined capacity of around 20 MW, attributable to both SIMEC GHR and third party interests. Each facility benefits from 20-year fixed price feed-in-tariff (FiT) payments. Furthermore, SIMEC GHR has one project under construction and one project in development, together representing 8 MW of additional capacity.
(GBP 1.0 = USD 1.269/EUR 1.125)