Nordic Financials ASA — M&A Activity 2018

Feb 15, 2018

Aega: Acquires Italian solar PV plant

15 February 2018 – Aega ASA has trough a wholly owned subsidiary today acquired a 0.8 MWp solar plant in Luino, Lombardy. Aega takes over Solar Park Luino S.r.l. for appr. MEUR 2.3, of which appr. 0.4 MEUR is equity and the remaining amount existing debt. The acquisition is expected to yield an IRR in excess of 15% on the equity investment, in line with the investment criteria of Aega.

The funds for the acquisition were raised in a few days in January, Aega addressing primarily its own shareholders, and without engaging external corporate advisors in the process, thus avoiding payment of any commissions for the funds being raised. Reference is made to the stock exchange announcements dated 6 February 2018 and 18 January 2018.

"Aega resumes its growth strategy. We strongly believe the underlying business model of Aega is viable. Our objective is to return to being a yield company," says chairman of the board Halldor Tjoflaat.

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.

"The strategy of acquiring relatively small power plants (<5 MWp) will be continued.This segment requires an organisation with hands-on experience and presence on the ground both for new acquisitions as well as maintaining the solar parks already purchased. All business being local, this is not the kind of activity you can perform remotely from London or Frankfurt. Aega is so privileged to have very experienced people performing the day-to-day tasks in Italy," says Tjoflaat.

An extended stock exchange notice will follow within Thursday 22nd 2018 at 09:00.

For more information, please contact

Halldor Chr. Tjoflaat, chairman of the board, mobile +47 90096406, mail cob@aega.no