PPC announces that it has entered into an agreement with Evryo Group (former CEZ), owned by funds managed by Macquarie Asset Management, to acquire its renewable energy generation portfolio in Romania, which consists of 629 MW of renewable energy in operation and approximately 145 MW assets under development. The deal has a total value of approximately 700 million euro and the overall valuation is in line with previous market transactions, with the total amount subject to customary adjustments.
The acquisition further strengthens PPC Group’s growth strategy in Romania and South-Eastern Europe, by adding a significant portfolio of operations from renewable sources, which includes an installed capacity of 600MW of wind power, 22MW of hydroelectric power, 6MW of storage in batteries, 1MW of solar and approximately 145MW of assets under development. Upon completion of the agreement, PPC’s renewable energy portfolio in operation in Romania will double, and the total installed capacity, in operation, of the PPC Group will reach 5.3 GW.
PPC Group has extensive experience in operating renewable energy projects, having a significant solar portfolio in Greece. This transaction will expand and diversify renewable energy operations by adding large-scale wind and hydropower projects in Romania.
The financing of the transaction is structured to be compatible with the PPC Group’s financial policy, to remain within the Group’s target debt ceiling. Upon completion, the PPC Group will add an estimated EBITDA of €100 million annually.
“This acquisition represents a significant new step for PPC Group’s overall growth strategy in Southeast Europe. We are accelerating the development of energy production from renewable sources in Romania by doubling our portfolio of renewable sources in operation, especially with wind and hydropower, further diversifying our renewable energy mix, with assets located in the most sought-after regions in Romania, with strong wind speeds. Our regional renewable energy strategy aims to generate power in attractive markets with a diversified technology portfolio. South East Europe is an increasingly interconnected market with converging energy prices and thus value can be created from adjacent synergies in trading, supply and risk diversification,” said Georgios Stassis, Chairman and Chief Executive Officer of the PPC Group.
Citigroup Global Markets Europe AG and Euroxx Securities SA are acting as financial advisors and Clifford Chance as legal advisor to the PPC Group in connection with the acquisition.
Closing of the acquisition is expected to occur by the fourth quarter of 2024 and will be subject to certain customary conditions precedent for this type of transaction, including, but not limited to, clearance from the relevant antitrust authorities.