Foresight Slr Fnd Ld Foresight Solar Fund Limited : Acquisition
September 28 2017 - 5:10AM
UK Regulatory
TIDMFSFL
28 September 2017
Acquisition
Foresight Solar Fund Limited ("The Company") is pleased to announce that
it has entered into a binding contract to acquire its first asset
outside of the UK with a commitment to acquire 48.5% of the share
capital of Bannerton Solar Farm ("The Project") in Victoria, Australia
(the "Transaction"). The Project will have a peak capacity of 110MWp
once operational. KDB Infrastructure Asset Management Co. Ltd on behalf
of Global Infrastructure Fund 3 and Hanwha Energy Corporation Singapore
Pte. Ltd, a subsidiary of Hanwha Energy Corporation, are co-investors in
the Project.
The Project will be acquired from a joint venture between Syncline
Energy Pty Limited and Foresight Solar Australia (UK) Limited, for
consideration of AUD 5.5 million which will consist of an initial
payment and deferred payments during construction. Foresight Solar
Australia (UK) Limited and Foresight Group CI Limited, the Company's
investment manager (the "Investment Manager") are both subsidiaries of
Foresight Group Holdings Limited. Once operational, the Project will
increase the Company's portfolio to 20 assets with a peak installed
capacity of 528MW.
The consideration may increase subject to the Project generating revenue
early and construction cost savings. The Project is expected to connect
to the grid in July 2018. The Project benefits from a 10 year contract
with the Victorian Government for the sale of a proportion of the
Large-Scale Generation Certificates ("LGCs") produced and a 17 year
fixed-price PPA with Alinta Energy, an Australian retailer, for a
proportion of the electricity generated. The remaining electricity
generated and LGCs will be sold at the prevailing market price.
The acquisition of the portfolio will be funded through the existing
revolving credit facility provided by Santander Global Corporate
Banking. The acquisition is subject to certain conditions being met. In
addition, the Project will benefit from an Australian Dollar denominated
debt facility provided by the Clean Energy Finance Corporation during
the construction and operational phase.
Foresight Solar Australia (UK) Limited is deemed to be a related party
of the Company under LR 15.5.4R as it is a member of the Investment
Manager's group. The Transaction is classed as a smaller related party
transaction under Listing Rule 11.1.10R. Stifel Nicolaus Europe Limited
as Sponsor in accordance with Listing Rule 11.1.10R (2)(b), has
confirmed that the terms of the Transaction are fair and reasonable as
far as the shareholders of the Company are concerned. The terms of the
Transaction were also agreed to by the unrelated parties named above who
participated in the sale and in the purchase of the Project.
Commenting on the acquisition, Alex Ohlsson, Chairman of the Company,
said: "This first overseas acquisition represents the development of the
Company's international growth strategy, which sees the Company's
portfolio now reach a total of 528MW of capacity installed or under
construction. This demonstrates the Company's ability to grow the fund
in attractive new geographies with expected attractive risk-adjusted
returns, while leveraging the Investment Manager's experience and track
record in both the UK and Australia. This acquisition follows the
Investment Manager's move to establish an office in Sydney in early 2016
prior to bringing its first Australian asset under management,
Barcaldine Solar Farm, in early 2017."
For further information, please contact:
Foresight Group
Romy Abrahams, RAbrahams@ForesightGroup.eu, +44
(0)20 3763 6956
Stifel Nicolaus Europe Limited, +44 (0)20 7710 7600
Mark Bloomfield
Neil Winward
Tunga Chigovanyika
J.P. Morgan Cazenove, +44 (0)20 7742 4000
William Simmonds
This announcement is distributed by Nasdaq Corporate Solutions on behalf
of Nasdaq Corporate Solutions clients.
The issuer of this announcement warrants that they are solely
responsible for the content, accuracy and originality of the information
contained therein.
Source: Foresight Solar Fund Limited via Globenewswire
(END) Dow Jones Newswires
September 28, 2017 06:10 ET (10:10 GMT)
Copyright (c) 2017 Dow Jones & Company, Inc.
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