Boralex acquires a portfolio of wind power projects of nearly 200 MW in France and in Scotland
Boralex is pleased to announce the completion of the acquisition of a portfolio of wind power projects of nearly 200 MW located in France and in Scotland as well as about 8,500 hectares of land on which the projects will be developed, for a total cash consideration of C$103 million (€70 million) (the “Consideration”) (the “Transaction”).
“With this acquisition, Boralex continues to expand in the French wind power market. The acquisition also demonstrates our willingness to explore new markets and we believe that Scotland, with its very advantageous wind conditions and a political environment generally favourable to renewable energy, including onshore wind power, offers attractive growth opportunities in the medium term,” noted Patrick Lemaire, President and Chief Executive Officer of Boralex.
The Transaction covers the following portfolio of projects:
A 51 MW ready-to-build project in Brittany, France (the “Moulins du Lohan”) the construction of which will start this fall with commissioning slated for Q2 2019;
A 23.5 MW project in Scotland at an advanced stage of development (“A Project”);
126 MW of projects in Scotland at preliminary stages of development (“B Projects”).
The total amount of investment required to complete the Moulins du Lohan project is estimated at €97 million (C$142 million), and Boralex will continue the study and development of A and B Projects based on the regulatory framework prevailing in Scotland in the medium term.
Furthermore, Boralex will decide in the coming months about the potential sale of the acquired land. Should Boralex decide to do so, all of the real estate rights in favour of Boralex for the future development of wind power projects would be maintained.
The Consideration was fully paid in cash using the Boralex’s existing revolving credit facility and its cash resources. Boralex is also in advanced discussions with BNP Paribas SA regarding a 24-month bridge loan of nearly €45 million (C$66 million) which is expected to close by the end of September 2016.
Legal advice to Boralex has been provided by K&L Gates LLP. BNP Paribas Corporate Finance acted as exclusive M&A advisor.