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Arise AB entered into an agreement for the sale of Kolvallen’s 277 MW wind farm, which was purchased by Foresight Group LLP (a UK-based independent infrastructure and private equity investor manager). Recently closing took place. The Project’s total consideration amounts to EUR 100 million. EUR 75 million of that is fixed and payable at closing and EUR 25 million is variable consideration, payable upon completion.
In total, the divestment will have a positive effect on earnings of around EUR 90 million over the period 2022-2025. Of this, approximately EUR 65 million is realized at closing. The amount of variable consideration that will be realized depends on how the Project is constructed in relation to budget and program. Arise will also manage the construction of the Project and, once it is operational, Foresight will manage it through asset and construction management agreements.
Arise will invest approximately EUR 17 millions in the Project. Arise also acquires approximately 9% equity in the Project. This is in line with Arise’s goal to be a more dynamic developer focused on maximising its project portfolio’s value.
Siemens Gamesa will supply 42 turbines, with a nominal total capacity of 277MW. The wind farm is expected be operational by the start of 2025.
DNB Markets and Setterwalls Advokatbyra AB advised Arise in this transaction.
Per-Erik Eriksson, CEO, Arise AB commented, “We are extremely happy to have realized the largest project of our company to date in these market conditions. Since Skaftasen’s sale in 2019, we have had a strong relationship with Foresight as well as Siemens Gamesa. This partnership is further strengthened by the Kolvallen project. We are pleased to have been able to invest in this project. It is the company’s highest ever production capacity. This further illustrates our flexibility and ambition to expand renewable power generation from an owner’s point of view. Kolvallen’s annual contribution to renewable power generation will be almost 1 TWh once it is operational. We look forward to delivering Kolvallen with our partners. This project was built on strong partnerships and team collaboration.”