Ignitis to acquire owner of 200-MW wind-solar project in Latvia

• Lithuanian energy business Ignitis Grupe AB (VSE: IGN1L) stated on Tuesday it has actually sealed a conditional deal to acquire a Latvian business creating a 200-MW hybrid wind-solar park project in its home country.

The name of the target firm, the procurement of which was accepted by Ignitis' administration board previously on Tuesday, was not revealed.

Under the plan, Ignitis will certainly make a financial investment of up to EUR 270 million (USD 267.1 m), including the purchase of the project as well as other capital expenditure. The acquisition price is set to be paid after certain growth landmarks have actually been attained.

The project present remains in the onset of growth and also is expected to go into construction around 2025-2026. Commercial operations are planned to be launched in the 2027-2028 duration, with the complex planned to run under market conditions.

Ignitis estimates that the return on the investment will certainly be in line with its target for a high single-digit to reduced double-digit return on a levered equity basis. The Lithuanian company will certainly execute the deal in line with its objective to reach 4 GW of mounted green generation capacity by 2030, it said.