Arise has entered into an agreement with Kraftö for the acquisition of parts of Kraftö’s project portfolio. In total, the acquisition comprises five projects corresponding to approx. up to 370 MW, provided that all projects obtain legal force permits.
The transaction is estimated to be completed on 1 January, 2017. The transaction is a consequence of Arise’s strategy to grow within wind power development while Kraftö is planning to concentrate on projects that are in a later stage of development or are entering the construction phase.
Through the transaction Arise will assume responsibility for further project development with the goal to develop the projects to legal force and sell the projects when they become construction- ready. In all material aspects, the purchase price comprises of an earn-out when and if the projects are sold on to third party investors.
Daniel Johansson, CEO Arise, said:
”We are very pleased with the agreement and believe that the projects have good pre-conditions for realisation. Two smaller projects have legal force permits where focus will be to optimise the projects ahead of a pending sale. In addition, there are three larger projects comprising approx. up to 300 MW which have yet to be granted permits. It is satisfying that Kraftö values our ability to realise projects and do transactions in a challenging market.”
Fredrik A. Svensson, CEO Kraftö, stated:
”We believe that Arise has good financial prospects and the capability to deliver large scale projects to the market. The company has demonstrated a track record of successfully developing and selling large projects to international investors. This deal allows us to secure project costs and agree on a plan for development of the five projects being sold. Our involvement with a company with the strength and capability of Arise is a very positive step forward for Kraftö and its shareholders.”