FILE - ElSewedy Electric
CAIRO – 16 June 2019: ElSewedy Electric Company announced entering into a share purchase agreement with R.F. Energy S.A, which is a subsidiary of F.G Europe S.A., to acquire the whole stake of the share capital of four companies in Greece for a total consideration of €55 million.
The company elaborated in a statement that the companies are three wind and one hydro-electric energy companies.
It added that the agreement will be funded by a ring-fenced project finance facility from the National Bank of Greece (NBG), covering up to 75 percent of the value, with the ability to be paid in equity.
It also stated that the completion date is expected to be on or before June 28,2019, and is subject to the normal terms and conditions of completing similar transactions.
“The four companies have an aggregate capacity of 63.6 MV. These are the three wind parks Aioliki Kilindrias SA, Kallisti Energeiaki SA, and Aioliki Aderes SA, and one small hydro power planet Hydroelectriki Achaias SA,” the company's statement read.
The statement clarified that the assets generate enough energy to power approximately 34,000 homes with an equivalent carbon dioxide (CO2) footprint of 102,000 tons.
According to the statement, the assets benefit from a fixed tariff for all generated capacity under power purchase agreements (PPA) for tenors that varies between 12 years to 20 years. “The PPAs stipulate that the public utility off-taker “DAPEEP” (Diacheristics Ananeosimon Pigon Energias Kia Eggyiseon Proelefsis S.A.) guarantees the purchase of all the energy produced at the parks.”
The statement revealed that the parks are located in Ermioniiin Argolida, Tsouka in Arcadia, Kilkis in Macedonia and Achia, and the assets benefit from existing infrastructure and interconnections.
“The transaction is considered a remarkable milestone for the group, as it represents expansion into the Renewable Energy sector to include wind and hydro-electric energy under ElSewedy Electric 's umbrella. This is in addition to the geographical expansion in Europe,” President and CEO of ElSewedy Electric Ahmed ElSewedy said.
He added that this investment is the company’s second independent power producer(IPP) project in the EMEA region after Benban Solar Power plant in Egypt.
During the first quarter of 2019, the company’s profits declined 30.4 percent on a year-on-year basis, recording LE 955.51 million, compared to LE 1.431 billion in the same quarter of 2018.
Elsewedy Electric operates within the capital goods sector, focusing on electrical components and equipment. It has subsidiaries operating across Northern Africa, Eastern Africa, Middle East and Southern Europe.