Nordic Financials ASA — M&A Activity 2016

Apr 25, 2016

Aega ASA signs LOI to acquire 14 MW solar plant portfolio

Oslo, 25 April 2016 – Aega ASA (Aega) has signed a letter of intent to acquire a company containing a 14 MW solar plant portfolio and EUR 10.7 million in cash from a private equity-firm

If the transaction is completed, Aega will quadruple its production capacity from today's 5 MW to 19 MW.

"If completed, this transaction will represent a major step towards our objective of reaching 50 MW production capacity within the next two years. It will also underpin the current quarterly dividend policy and provide a financial platform to support the growth strategy of Aega ASA," says Knut Øversjøen, Chairman of Aega.

The majority of the solar parks contemplated to be acquired are fixed ground mounted and at an early stage of their 20-year concession period – similar to Aega's current 5 MW portfolio in Italy. All the parks in the portfolio have historically delivered an internal rate of return (IRR) which is in line with the IRR from Aega's current assets and the group's overall investment target.

Aega aims to acquire the company, containing the 14 MW portfolio and EUR 10.7 million in cash, for a total equity value of approximately EUR 22 million (based on a theoretical trading price of the Aega share of NOK 3 per share), against a share-based consideration.

The seller does not intend to make a mandatory offer for all the shares in Aega in connection with the transaction.

A final transaction is subject to agreement on the transaction documentation, fulfilment of various conditions and a 2/3 majority vote in an Extraordinary General Meeting (EGM) of Aega. Further details of the transaction, including details of the seller, will, if the parties decide to proceed with the transaction, be provided in the summons for the EGM. The intention is to close the transaction by mid-June 2016.

ENDS

For further information, please contact:

Knut Øversjøen, chairman of Aega ASA, tlf: +47 90 86 06 19

Vegard Finstad, CEO of Aega ASA, tlf: +47 911 92 132

About Aega

Aega is a solar utility company that acquires and operates solar power plants. The company currently owns a portfolio of five individual solar parks in Italy with a combined production capacity of 5MW. The company focuses on acquisitions of smaller existing solar parks (below 5MW capacity). It targets to reach a total production capacity of 50MW within the end of 2017 by taking advantage of the current attractive market for secondary solar parks. The company has its operating offices in Oslo, Norway, and Trento, Italy.