Metis Energy, through its wholly-owned subsidiary Athena Energy Holdings has signed a conditional sale and purchase agreement to acquire a 100% equity interest in a solar farm (111 MWp DC/ 94 MW AC) utility-scale project which is in the final stage of development completion (Project Sunshine) for A$12 million ($11.5 million).
The consideration includes the settlement of outstanding debt of the target company on completion. The target company has secured a 30-year land lease and strong support by local government, industry and the surrounding community. After completion of the acquisition, Project Sunshine will provide Metis with another key milestone in driving further growth in Australia. The group will provide further announcements in due course.
The consideration for Project Sunshine was determined on a willing-buyer willing-seller basis, considering the strategic merits, project quality, prevailing market condition and financials via customary valuation techniques. This investment will be funded through internal funds. The proposed transaction is expected to be completed by end-December and is subject to fulfilment of conditions precedent.
Alan Yau, general manager of Metis says: “Metis is investing into a significantly derisked ‘ready-to-construct’ utility-scale solar project. This sizeable project will set the foundation for Metis growth in Australia. It will provide us the platform and catalyst to expand our renewable energy business in Australia. Leveraging on the attractive electricity market environment and positive trend in Australia, Metis will enhance its valuation by scaling up our portfolio in Australia... Moving forward, we will devote necessary resources and management attention to ensure the successful closing and eventual commissioning of Project Sunshine.”
Sivaramakrishnan Sreedharan, chief investment officer of Metis adds: “The acquisition of this project in Australia is an important step to accelerate Metis’ growth in the renewables space. We are focused on the execution of our growth strategy across our focused market. Metis is committed to relentlessly contribute towards the energy transformation, for a better and more sustainable future.”
Shares in Metis closed 14.5% higher on Sept 16 at 7.1 cents.
