EDPR obtains majority stake in German solar company
- Acquisition of 70% shareholding in Kronos provides developer grip in Germany as well as the Netherlands
EDP Renewables (EDPR) has completed the acquisition of a 70% risk in Kronos Solar Projects, a developer based in Germany.
Kronos has a "lean growth team with a long-term know-how" on solar growth and a portfolio of 7.5 GW of solar projects in different stages of development, more than half of which remains in Germany, and the rest in France, the Netherlands as well as the UK.
The acquisition permits EDPR to enter into Germany and the Netherlands which gain from enthusiastic renewables targets, offered the raised value of safety of supply and energy self-reliance.
With this deal, EDPR expands its presence to 12 markets in Europe, which in general stand for more than 90% of the anticipated solar capacity additions in EU up until 2030.
Moreover, the entry in these new markets produces possibilities to expand not only in solar but additionally in various other innovations, namely wind through hybridisation, new wind pipe, hydrogen and storage modern technologies, stated EDPR.
The offer was closed for an acquisition cost of EUR250m paid at closing and a success fee to be paid to the vendors over 2023-28, depending on the solar capacity provided by Kronos advancement team in this period.
The transaction consists of additionally call/put options on the remaining 30% minority risk in Kronos, which is held by its creators that will continue to be involved in the everyday management of the business, exercisable from 2028 onwards, with strike cost associated to the standing of renewables projects under advancement by Kronos on that year.