Atlantis, has agreed to sell a minority stake in Atlantis’s Scottish tidal development company, Tidal Power Scotland Limited (TPSL) to DEME for cash consideration, subject to satisfaction of certain conditions precedent (including procurement of third party consents and agreement with DEME of commercial arrangements in relation to offshore construction works).
DEME has agreed to pay Atlantis £2 million (US$ 3 million) in cash consideration for a 2% stake in TPSL and a right to contribute equity funding to the Sound of Islay project. As part of the transaction, Atlantis and the DEME group intend to develop (subject to necessary consents and agreement of documentation) a partnership for offshore construction works to draw on the experience and expertise of the DEME group in the offshore renewables sector for the benefit of the Company’s Scottish portfolio build out.
This follows TPSL’s agreement with Scottish Power Renewables (UK) Limited (SPR) in December 2015 to acquire the 10MW Sound of Islay project and 100MW Ness of Duncansby project in exchange for a 6% shareholding in TPSL. Following the completion of the DEME and SPR transactions, Atlantis will retain a 92% stake in TPSL.
The DEME group has a fleet of over 90 major construction vessels and the group’s turnover in 2015 was €2.35 billion. GeoSea NV, as DEME’s specialist offshore construction arm, has over 35 years of experience in complex offshore construction projects. The DEME group is an existing investor in marine energy projects through DEME Blue Energy NV, a partnership between DEME and PMV (ParticipatieMaatshappij Vlaanderen).
Tim Cornelius, CEO of Atlantis, said:
"We are excited to welcome DEME as a strategic investor into the TPSL portfolio. As a respected global leader in offshore renewable energy installation, DEME brings a wealth of expertise and we are particularly excited to work closely with them to help deliver our Scottish project pipeline.”
Alain Bernard, CEO of DEME group, said:
“This transaction is a vital move for the DEME group in fulfilling its ambitions to be at the forefront of the growing tidal energy industry. Moreover, it consolidates the company’s presence in the UK as DEME’s involvement in the UK offshore business dates back to the early years of offshore wind. We look forward to working alongside Atlantis and SPR as shareholders in TPSL to develop and construct this unrivalled portfolio of projects.”