On the intention to acquire three wind farms developed in Latvia
AB “Ignitis grupė” (hereinafter – the Company or Ignitis Group) informs that the Company’s Management Board approved the conclusion of three conditional share purchase and sale agreements (hereinafter – Agreements), according to which the Company’s subsidiary UAB “Ignitis renewables” (hereinafter – Ignitis Renewables) on 12 August concluded conditional agreements to acquire 100% of shares of Latvian companies that are developing three wind farms in Latvia.
The total capacity of the wind farms under development in Latvia is around 160 MW. All three wind farms are in the early stages of development with an estimated COD around 2025–2027. The completed projects will operate under market conditions.
Transactions’ closing will depend on the conditions set out in the Agreements, including the commitment of the selling entities to develop the wind farm projects until the construction stage and, after receiving permits for construction, dispose the shares of the companies to Ignitis Renewables. Meanwhile, Ignitis Renewables will have the right to participate in decisions related to the implementation of the projects. Estimated construction launch is around 2024–2025.
The total preliminary sum of investments amounts up to EUR 200 million. The acquisition price of these projects does not exceed 10% of the total investment amount. The payment of the acquisition price depends on achievement of development stages established in the Agreements. It must be noted that the estimated total return on equity of the projects is equal to the levels of similar projects communicated earlier and at the higher end of our target returns range, i.e. of high single-digit to low double-digit.
The Company reminds that the objective of Ignitis Group companies to consistently increase Green Generation portfolio and reach 4 GW of installed capacity by 2030 is set out in the Ignitis Group strategy (link). Thus, implementation of agreements contributes to the implementation of strategic objectives.
For more information please contact:
Head of Public Relations at Ignitis Group
+370 620 76076