SKL to take over 150-MW Norwegian wind farm, Aquila to exit asset

Norwegian hydropower energy company Sunnhordland Kraftlag AS (SKL) has agreed to take a controlling stake in a 150-MW operational wind farm at home in a deal that will see London-listed diversified renewable energy investment trust Aquila European Renewables (LON:AERS) sells its entire interest in the asset.

AERS, which invested in the Fitjar municipality-based facility in 2019, said in a filing published today that it will sell its 25.9% stake in the Tesla wind farm to SKL for EUR 27.1 million (USD 29.9m).

SKL in a separate statement explained that it is set to acquire 95% of the asset, locally known as Midtfjellet Vindkraft, in a deal carried out in partnership with local energy cooperative Fitjar Kraftlag. The latter will have a 5% stake upon completion.

The transaction values the Midtfjellet wind farm at EUR 131.4 million, debt not included.

The investment will increase SKL’s renewable energy production by nearly 15% to 3.2 TWh from 2.8 TWh and advances the company’s strategy to achieve an annual output of 4 TWh.

Equipped with 55 Nordex turbines, the facility has an annual production of 420 GWh, which is enough to power 60,000 residents. The site was developed in two phases completed in 2013 and 2018.

The ownership of the facility is currently split among local cooperative Fitjar Kraftlag and three financial investors, whose funds are administered Aquila Capital, according to the Midtfjellet Vindkraft website.

AERS further commented in its Thursday statement that the proceeds from the divestment will be used to repay the AERS' revolving credit facility which is currently drawn to EUR 26.1 million. The sale price represents a 10.8% premium to the company's fair value of the asset as of the end of June.

(EUR 1 = USD 1.105)

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