The New York-based renewable energy company said in a press release that under the deal announced in late 2017, its subsidiary PC Italia 02 Srl paid €3.65 million ($4.25 million) for assets, agreements and liabilities related to the ownership and operation of the three power plants. They represent a total of 2.24 megawatts of installed power in the Budrio and Anagni regions of Italy.
The solar parks, according to Alternus, have been operating for almost five years and add about €600,000 ($700,000) in annual revenue to the company, with operating margins of more than 85%.
The parks benefit from feed-in-tariff government incentives that guarantee a fixed sales price for every megawatt of energy that the parks generate over 20 years from the date of construction, Alternus said.
The company has a backlog of about €9.5 million ($11 million) of contracted revenue over the next 15 years.
“It is personally very pleasing to finally complete this acquisition that we announced in late 2017,” Vincent Browne, CEO, president and chairman of Alternus, said in a statement. “It emphasizes our continued commitment and growth in the Italian market going forward with additional strategic acquisitions in the pipeline there.”
To fund the acquisition and related costs, Alternus said it issued a loan note in the aggregate principal amount of €3.8 million with annual interest at 12% per annum and having a six-month term.
The company added that it is in negotiation with an Italian bank to provide project financing for the solar parks. If completed, the financing will replace the note with more suitable long-term financing, according to Alternus.
Shares slipped US$0.03 to US$0.11 in Monday’s OTC Markets trading.
Contact Dennis Fitzgerald at [email protected]