Ellomay Capital offloads 22.6-MW Italian solar portfolio

• Ellomay Capital Ltd (TASE:ELLO) on Monday said it has sold twelve solar power plants with a total capacity of 22.6 MW for EUR 38.7 million (USD 42.6m) in cash.

The solar power parks included in the sale are owned by ten Italian indirect wholly-owned subsidiaries of the Israel-based renewable power producer, which are also sold as part of the deal. The Italian solar portfolio was built between 2010 and 2013 and is based on a government feed-in tariff (FiT), according to the statement.

Ellomay Capital expects to book a profit of about EUR 19 million in connection with the transaction in its results for the final quarter of 2019.

The company intends to use the proceeds for an early redemption of its Series A Debentures, due 2023. The redemption, planned for December 31, will be worth about ILS 85.8 million (USD 22.3m/EUR 20.3m), it was announced last week.

The proceeds from the sale will also be used for investment in new solar projects to be built in Spain and Italy next year, CEO Ran Fridrich said.