Viridis Clean Energy Group (VIR) today announced that it has signed a contract to sell its 82 MW German wind farm portfolio to a European investment fund. The transaction values the portfolio at €72.2 million (pre transaction costs and any completion adjustments). Under the transaction the purchaser will pay VCEG a purchase price of €20.2 million and will assume liability for the existing project debt. Of the total purchase price amount, €19.3 million will be paid in cash to VCEG on transaction completion and the balance (€0.9 million) will be paid into escrow and released to VCEG over the next 20 months, contingent on the occurrence of certain events. The purchase price represents $0.16 per VCEG stapled security.
In the 2009 financial year, the German wind farm portfolio contributed 32% of VCEG’s adjusted EBITDA. Book value for the portfolio at 30 September 2009 was €18.8 million. Completion of the transaction is expected to occur within the next 2-3 weeks following satisfaction of various administrative requirements. As previously stated, VCEG intends to apply the net sale proceeds (post transaction costs) to pay down its corporate debt. Depending on final transaction costs and exchange rates it is expected that the transaction will facilitate a debt repayment of approximately $29.0 million, leaving a principal amount outstanding on the corporate debt of $32.6 million. The sale of the German wind farm portfolio is consistent with VCEG’s stated strategy of retiring its current corporate debt in advance of the facility maturity date of July 2010. The board intends to continue this initiative through evaluating further assets sales and / or raising additional capital, based on its ongoing assessment of what will deliver the best result for VCEG security holders.
Viridis Clean Energy Group is an ASX listed energy infrastructure fund that has been established by Viridis Energy Capital Pty Limited as a special purpose investment vehicle focused exclusively on direct, long-term investment in a global portfolio of clean energy projects. Viridis invests in projects employing proven renewable, waste and other clean energy fuels and technologies in selected geographical markets, with a primary focus on Europe, North America and Australia.
