Arise has entered into a conditional agreement for the sale of its 12.8 MW Bohult wind farm to a fund managed by Allianz Global Investors
Arise AB (publ) (“Arise”), has today entered into a conditional agreement for the sale of the 12.8 MW operating Swedish wind farm Bohult (the “Wind Farm”) to AREF2, a fund managed by Allianz Global Investors (“AllianzGI”) for a consideration of EUR 19.1 million on a cash and debt free basis. The transaction is based on an annual production of 42.4 GWh. An additional consideration may be payable to Arise subject to future production developments.
Completion of the sale is subject to certain final investigations among other merger control and a final technical inspection, which is expected to occur end of September or early October 2016. In addition to the sale, Arise will operate the Wind Farm on behalf of AllianzGI under a 5-year asset management contract.
Subject to completion of the sale as planned, the cash flow effect after repayment of project financing debt and cancellation of an interest rate swap is estimated to just over SEK 90 million. This also includes the release of blocked accounts. The transaction is expected to have a marginal impact on Arise’s earnings in 2016
“This constitutes our second transaction with Allianz GI, which is most satisfactory. We are proud to announce what we think is an attractive transaction for Arise despite relatively tough market conditions. We are now working with full force to achieve completion of the transaction during the fall”, says Daniel Johansson, CEO Arise AB.
Halmstad 19 July, 2016
ARISE AB (publ)
For further information, please contact:
Daniel Johansson, CEO Arise AB, + 46 702 244 133
Linus Hägg, CFO Arise AB, +46 702 448 916
This information is information that Arise AB is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact person set out above, at 0800 CET on 19 July 2016.
Arise is one of Sweden´s leading wind power companies, with the business concept to develop, build and manage onshore wind farms for its own account and on behalf of investors. The company is listed on NASDAQ OMX Stockholm.