Eku Energy commissions 40-MW battery site in England
Sep 18, 2024 5:37 CESTUK-based renewable energy developer EEW Renewables Ltd has entered into a definitive business combination agreement to merge with Compass Digital Acquisition Corp (NASDAQ:CDAQ), a special purpose acquisition company (SPAC), taking another shot at going public.
The proposed deal, valued at USD 300 million (EUR 270.6m) pre-money and USD 386 million pro forma enterprise value, will provide EEW with USD 25 million in gross cash proceeds from SPAC trust and additional financing, EEW and CDAQ said on Friday.
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EEW, focused mainly on Europe and Australia, initially worked with solar before adding battery energy storage systems and green hydrogen projects to its list of interests. The firm says it has developed 1.5 GW of projects since its founding in 2012 and now boasts a pipeline of 9 GW in development.
The merger is expected to accelerate EEW's growth and help it transition from a pure-play developer to an independent power producer (IPP). As an IPP, EEW will be able to generate recurring revenue by managing and operating select projects.
“[The] business combination represents a significant milestone for EEW and enables us to continue to grow the business and capitalize on our significant existing project pipeline. Our team has demonstrated a strong track record of originating and developing utility-scale renewable energy projects globally and is committed to generating clean and renewable energy,” said Svante Kumlin, CEO of EEW.
The deal is expected to be finalised in the first quarter of 2025, subject to customary closing conditions, and the combined company will seek a listing on Nasdaq. EEW's existing shareholders are expected to own approximately 79% of the resulting entity after the merger.
The current management team, led by Kumlin, will continue to lead the business after the transaction.
EEW attempted a SPAC merger in 2021 with blank check company ClimateRock. At the time, October 2021, the deal had an equity value of USD 650 million. In November 2023, ClimateRock announced it had decided to terminate their business combination agreement.
(USD 1.0 = EUR 0.902)
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