Estonia-based energy company Eesti Energia has announced the acquisition of Nelja Energia, a renewable energy producer and developer in the Baltic countries, for €289m.
Image: Wind farm in Estonia. Photo: Courtesy of Eesti Energia.
The company’s subsidiary Enefit Green has entered into share purchase agreement with Vardar Eurus AS and minority shareholders to buy all the shares in Nelja Energia. In addition, Enefit Green will also assume a net debt of the company, which stood at €204m at the end of 2017.
Last year, Eesti Energia generated 9,736 GWh of electricity, out of which 372 GWh belonged to Enefit Green.
Enefit Green owns and operates four wind farms with total capacity of 111 MW, three combined heat and power plants in Estonia and Latvia, a hydro power plant and a solar power plant.
It generates renewable energy from diversified sources including wind, biomass, hydro, municipal waste and solar.
On the other hand, Nelja Energia owns 17 wind farms in Estonia and Lithuania whose total capacity if 287MW.
Additionally, the company owns a pellet factory and the combined heat and power plant in Latvia and has minority stake in two biogas stations in Estonia. Last year, Nelja Energia generated 761GWh of electricity through wind.
Eesti Energia board chairman Hando Sutter said: “The strategic goal of Eesti Energia is to increase the share of electricity produced from renewable and alternative sources to 40% in the production portfolio of the Group by the year 2022.
“Besides the construction of new production units, one more way to achieve the goal is to acquire suitable companies. When a message about Vardar selling Nelja Energia came up in the beginning of the year, we were interested, because this would help us implement our strategy.”
The transaction is subject to approval by the County Executive Board of Buskerud County Administration, and customary approvals and clearances by relevant competition authorities.