17 April 2020
Reference is given to the stock exchange notice of the 23rd of December 2019 and the Q4 report 2019.
Following the sale of the Varmo and Codroipo power plants to Energeia AS the 15th of August 2019, Energeia AS initiated a process to either refinance or sell the power plants. The initial sale to Energeia AS was conducted in order to safeguard the financial integrity of EAM Solar ASA. EAM Solar ASA receives a 9% annual interest on any amount outstanding on the seller’s credit related to the transaction from the 1st of January 2020.
On the 23rd of December EAM Solar ASA was notified that Energeia AS had received 3 non-binding offers with price indications above the EUR 17 million purchase price of August 2019.
EAM Solar ASA was notified on the 16th of April 2020 that Energeia AS entered into a Share Purchase Agreement whereby the Special Purpose Vehicles that owns the Varmo and Codroipo power plants has been sold for a gross consideration before taxes and transaction costs of approximately EUR 20 million.
In accordance with the Share Purchase Agreement between EAM Solar ASA and Energeia AS of the 15th of August 2019, EAM Solar ASA is entitled to receive 75% of a realized sales value above a net enterprise value approx. EUR 17 million after subtraction of transaction costs, taxes etc.
The cash proceeds from the sale is expected to be received during April/May 2020. The first quarter report will contain more details on the transaction and the financial impact on EAM Solar ASA.
For further information, please contact:
Viktor E Jakobsen, CEO, phone +47 9161 1009, viktor@eam.no
About EAM Solar ASA: EAM Solar ASA is a utility company that acquires and operates solar power plants. The Company currently owns solar PV power plants in Italy. The plants are operating under long-term sales contracts. In addition, the Company's business is lawsuits in relation acquisition of solar power plants.
This information is subject to the disclosure requirements pursuant to section 5-12 of the Norwegian Securities Trading Act.