Nordic Financials ASA — M&A Activity 2017

Apr 21, 2017

AEGA ASA Oscars gate 52 0258 Oslo NORWAY

Aega: Acquires Italian solar PV plant

Aega ASA has through a 100% owned subsidiary today signed an agreement to buy a solar PV plant of 1MWp production in Emilia-Romagna in Italy by taking over Casale S.r.l. for ca. 2,8mEuro of which 0,9mEuro is equity and the rest is takeover of existing debt. The Casale S.r.l. acquisition is expected to yield an IRR of 15 percent from the equity investment.

– We have made careful inspections and due diligences, so we know that it is a solid and well run plant we buy, says Managing Director Rolf Normann in Aega.

After today's acquisition, Aega ASA owns and operates seven solar plants in Italy with a combined capacity of 7MWp. The target is to reach a capacity of 20MWp within 2017.

‐ We are well on our way to clear the goal. We have a good overview of the market in Italy, and we have already identified a number of solar plants that fits into our investment strategy, says Normann.

Aega's main strategy is to acquire relatively newly built solar plants in Italy, and by this benefit from the incentives in place in Italy, the so called "Feed-in-Tariffs". This provides for a secure cash flow for 20 years from completed construction and is considered a relatively low-risk investment that among other things provides for good funding arrangements.

‐ Solar energy was and still is an important focus area for the Italian authorities, therefore in 2010‐2013 they put in place very lucrative incentive schemes to pave the way for investments. They succeeded as 18000MWp of solar PV capacity was built mainly in the course of these 3‐4 years, and today, around 7% of all electric power in Italy is produced from solar energy.

The introduction of the incentive schemes in Italy meant that a number of smaller investors such as entrepreneurs, farmers, families etc. threw themselves on the opportunity and built a solar plant on available land and in many cases with neither technical nor operational competence or maybe even the genuine interest in place.

‐ Several of these companies now want to get out their investments and rather move their focus back to their core business, and this is where we have found our market. We have long experience in Italy, and work with solid partners in operation and maintenance. We also know what to look for when we undertake due diligences, and our acquisitions to date have all been successful, Normann says.

Aega also benefits from efficiency gains due to operating a portfolio of solar plants.

‐ Natural portfolio benefits combined with high technical focus and operational expertise, resulting in a more efficient management than the previous owners achieved separately, Normann says, and we have thus far had an increase in average energy production of more than 4% after taking over operation and maintenance.

For more information, please contact:

Rolf M. Normann, CEO in Aega ASA; mobile: +47 91344134; mail: rmn@aega.no or Markus H. Enge, CFO in Aega ASA; mobile: +47 40064820; mail: mhe@aega.no

An extended stock exchange notice will follow within Wednesday 26 April at 09:00.

Oslo, 21 April 2017 Aega ASA

About Aega:

Aega ASA is a solar energy company that acquires and operates solar PV power plants and is listed on the Oslo Axess stock exchange. The company owns seven solar power plants in Italy with a combined production capacity of 7MWp. The core strategy is to acquire smaller solar PV plants with a maximum production of up to 5MWp. The company has offices in Oslo, Norway and Trento, Italy. For more information about Aega ASA, see www.aega.no.