SIMEC Atlantis Energy has agreed to acquire SIMEC Green Highland Renewables (SIMEC GHR) from SIMEC group, part of the GFG Alliance, for a value of £124.7m.
Atlantis stated that the total value includes £95m in long-term project financing already in place on terms satisfactory to Atlantis. Additionally, GHR will benefit from £24m capex facility to fund all planned future capex and £2m of revolving credit facility.
SIMEC GHR is said to have developed a portfolio of operational, hydro-electric assets benefitting from long-term renewable energy support. The portfolio includes 11 operational projects encompassing 15 schemes with a combined capacity of 20MW, one project under construction of 2MW and one project in the development stage of 5.9MW.
Of the total capacity, including the assets under construction and development, SIMEC GHR has an interest of 24.9MW of capacity and the balance being attributable to third party interests under joint ventures in relation to three projects.
All the projects have secured fixed RPI-linked FiT payments for generation for a period of 20 years from the commissioning, besides receiving revenues for exporting the generated electricity.
SIMEC Atlantis Energy CEO Tim Cornelius said: “This proposed acquisition is one of the most exciting developments in the recent history of Atlantis. The management team at SIMEC GHR are world renowned for their mini-hydro development, construction, operations and maintenance capabilities.
“They have built a unique portfolio of operating assets in the UK that cannot be replicated due to recent changes in legislation. Not only will this acquisition have a positive cash flow positive impact on our group in the first year and deliver generation diversification, it validates the Atlantis relationship with our strategic shareholder, SIMEC, and it gives us access to one of the most accomplished and respected hydro development teams in the UK.
“Our combined goal is to now support the SIMEC GHR management to continue to replicate this success in other jurisdictions worldwide where we believe we can deliver superior risk-adjusted returns for our shareholders. This is yet another material step towards establishing Atlantis as a leading independent power generator in the UK.”