Foresight spends $28m on 231 MW Swedish wind farm

UK investment manager Foresight has bought the 231 MW Skaftasen wind farm in Sweden from Arise for more than €25m ($27.8m). Arise is currently building the farm and after the sale will provide management services. The deal involved shares in Skaftasen Vindkraft, which holds the project rights, being sold to Foresight’s Swedish fund FW Skaftasen BidCo. The agreement also includes a production-based earn-out scheme which could be up to €4.5m.

Arise AB (STO:ARISE) has signed a deal to sell its 231-MW Skaftasen wind farm project in Sweden to funds managed by UK investment manager Foresight Group LLP for over EUR 25 million (USD 27.8m).

The Swedish onshore wind farm developer unveiled the deal on Wednesday, saying this is its largest project sale to date. Under its terms, it will get a fixed amount of EUR 19.1 million plus an additional EUR 6.4 million in variable consideration that will be allocated after the project’s construction is over. The transaction, which was completed on the day of the announcement, involved the sale of shares in Skaftasen Vindkraft AB, the company which holds the rights to the wind project, to Foresight-controlled FW Skaftasen BidCo AB.

The deal also includes an additional production-based earn-out scheme of up to EUR 4.5 million. According to Arise’s estimates, it will have a positive impact on its earnings of around SEK 210 million (USD 22.4m/EUR 20.1m) in total in the three years between 2019 and 2021, with SEK 140 million to be booked in the last quarter of 2019. The variable part of the purchase amount depends on how the project’s construction will proceed versus plan and budget.

Arise will manage the wind farm’s construction, which has already been initiated, and will provide asset management services following commissioning. The power plant will be equipped with 35 Siemens Gamesa turbines of 6.6 MW each, planned to go live in late 2021.

The acquisition is Foresight Group’s first greenfield onshore wind investment in Sweden.

(EUR 1.0 = USD 1.114)

(SEK 1.0 = USD 0.107/EUR 0.096)

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