GIH said it had sold 95% of Yesil Enerji in a deal valued at Euro139.2M (US$195M), including earn out. The deal has closed on schedule.
The company added that Yesil Enerji holds controlling interests in six hydro power projects in Turkey with combined capacity of 560MW, and all have generation licences. Further, it said that development and construction of the plants would call for approximately US$1B over the next five years.
In March, when announcing the proposed deal, the companies said that Yesil Enerji had controlling interests in a developing portfolio of seven projects with potential for 633MW of installed capacity. One plant (20MW Cakit) is under construction and, back then, four of the projects had generation licences and two were seeking them.
GIH also said then that if the final deal included all seven projects then the development and construction budget could be up to Euro700M (US$980M).
In structuring the final deal, the agreed enterprise value of Yesil Enerji was taken to be Euro98.1M (US$138M), based on all six plants being fully owned, and including Euro7.9M (US$11M) of external loans.
To achieve full ownership of all plants, said GIH, payment totalling Euro16.2M (US$22.7M) is to be made for the non-held stakes in two projects.
In addition, there is an earn out mechanism in the deal which will see Statkraft make further payments to GIH during the first three years of operation of each plant, the payments being based on 50% of over-benchmarked electricity wholesale price and 50% of carbon credits through to 2017.
In terms of payment transfer, 95% of the deal value is to be made in cash on closing, the balance upon progress with the projects - except for Cakit, which is well advanced. GIH said it expected the balance of funds to be paid in equal instalments this year and next.
