The transaction represents an Enterprise Value of approximately €700 million, which is in line with previous market transactions and with the purchase price subject to customary adjustments.
The acquisition further strengthens PPC Group’s growth strategy in Romania and Southeast Europe by adding a significant RES portfolio in operation, which includes 600MW onshore wind farm projects, 22MW small hydropower plants, 1MW floating solar farm, battery energy storage systems 6MW, and about 145MW under development. Upon completion of the agreement,the RES portfolio in operation of PPC in Romania will be doubled and the total installed capacity of the PPC Group will reach 5.3GW.
PPC Group has extensive experience in the operation of RES, with a significant portfolio of developing mainly photovoltaic projects in Greece. This agreement expands and diversifies the Group’s activities in RES as large wind energy projects and hydroelectric plants are added in the Romanian region.
The financing of the acquisition is structured in such a way that it is in line with the financial policy of the PPC Group and remains within the target regarding the Group’s maximum leverage. Upon completion of the transaction, the PPC Group will add EBITDA of approximately €100 million annually.
The President and CEO of PPC Group, Mr. Georgios Stasis, stated: “This acquisition is a new important step for the overall development strategy of the PPC Group in Southeast Europe. We are accelerating the development of renewable energy production in Romania by doubling the portfolio of operational RES and, more importantly, with wind and hydro projects, further diversifying our mix, with projects located in the most sought-after areas of Romania, with high wind potential. Our regional renewable energy strategy aims to generate energy in attractive markets, with a technologically diversified portfolio. South East Europe is an increasingly interconnected market with converging electricity prices and therefore value can be created from synergies in trading, supply and risk diversification».
Citigroup Global Markets Europe AG and Euroxx Securities SA are acting as financial advisors and Clifford Chance as legal advisor to PPC Group for the said acquisition.
Completion of the acquisition is expected to take place by the last quarter of 2024 and is subject to certain conditions customary for this type of transaction, including, but not limited to, the relevant permission from the relevant Competition Authority.
PPC is the leading electricity company in Southeast Europe, with activities in electricity generation, distribution and marketing of advanced energy products and services in Greece, Romania and North Macedonia. It has a total installed capacity of 11.5GW, consisting of thermal, hydroelectric and RES facilities with a total annual output of approximately 20TWh, while the total Regulated Asset Base of its networks amounts to approximately €4.3 billion. PPC Group is the leading supplier of electricity in Greece and Romania, serving a total of 8.8 million customers, providing them with approximately 33TWh of energy and a wide range of energy products and services. PPC is listed on the stock exchange and its shares are traded on the Main Market of the Athens Stock Exchange.
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