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EDISUN POWER EUROPE AG (FRA:EPH) EQS-Adhoc: The Next Milestone in Edisun Power's Growth Strategy

Directive transparence : information réglementée

04/02/2019 18:15

EQS Group-Ad-hoc: Edisun Power Europe AG / Key word(s): Strategic Company Decision
The Next Milestone in Edisun Power's Growth Strategy

04-Feb-2019 / 18:15 CET/CEST
Release of an ad hoc announcement pursuant to Art. 53 KR
The issuer is solely responsible for the content of this announcement.


Ad-hoc Press Release
Zurich, 4 February 2019

The Next Milestone in Edisun Power's Growth Strategy

- Construction of a 49 MW photovoltaic power installation in Portugal

- Entry into the non-subsidized solar power production market

- Expansion of cooperation with project developer Smartenergy Invest AG


Edisun Power is taking another significant step as part of its growth strategy. The company has signed a contract to acquire a 49 MW photovoltaic construction project in north-eastern Portugal. The project is being sold by the Swiss company Smartenergy Invest AG. The closing of the sale is subject to customary market conditions and should be completed in the second quarter of 2019 at the latest.

There is already an established business relationship between Edisun Power and Smartenergy. In February 2017, Edisun Power purchased the 12 MW Requena project near Valencia in Spain from Smartenergy. Since connection in March 2018, the facility has been feeding electricity to the grid at favorable levels of performance. In the context of the new transaction, Smartenergy will acquire an interest in Edisun Power by means of an increase in capital through a contribution in kind.

The 49 MW plant heralds a new era for Edisun Power, as the energy produced will be sold on the market without any government subsidies or feed-in tariffs. Thanks to the high levels of solar radiation and low investment costs, production costs will be far below current market prices. In order to secure income for the first few years of operation, the company plans to conclude a PPA (Power Purchase Agreement) with fixed price purchase commitments.

Construction of the plant will begin this year and the facility should be connected to the grid in the first half of 2020. Around 80 million kilowatt hours of electricity will be produced per year from an area of about 65 hectares, which is equivalent to the annual needs of a city with around 20'000 inhabitants. From 2020 onwards, the project will realize a net result of around CHF 1 million on an annualized basis.

The investment will be covered by existing funds, project financing and by a capital increase through contribution in kind. The contribution in kind will result from the issue of 80'715 shares from the authorized capital, whereby Smartenergy will hold a share of around 13.6% in Edisun Power after completion of the transaction.

On the occasion of Edisun Power's General Meeting on 17 May, a representative of Smartenergy will be proposed for election to the Board of Directors in order to reinforce closer strategic cooperation.

The transaction marks not only a further important milestone in the development of the Group, but also, with the involvement of Smartenergy Invest AG, a clear sign of continued commitment to growth.

For more information
Rainer Isenrich, CEO
+41 44 266 61 21, info@edisunpower.com
Edisun Power Europe Ltd, Universitätstrasse 51, 8006 Zurich
www.edisunpower.com

Horst Mahmoudi, CEO & Executive Chairman
+41 44 210 16 00, info@smartenergy.net
Smartenergy Invest AG, Sihleggstrasse 17, 8832 Wollerau
www.smartenergy.net

Edisun Power Group
A listed European solar energy producer, the Edisun Power Group finances and operates solar power installations in a number of European countries. Edisun Power began its involvement in this sector as far back as 1997. The company has been listed on the Swiss Stock Exchange since September 2008. Edisun Power has amassed extensive experience in the realization and acquisition of both national and international projects. Currently, the company owns a total of 37 solar energy installations in Switzerland, Germany, Spain, France and Italy.

Smartenergy Invest AG
Since 2011, Smartenergy Invest AG has developed and built solar power plants and wind turbines in Europe, with a particular focus on Portugal and Spain. Smartenergy sells these projects to family offices, electricity producers (IPPs) and utilities. The Group includes its own project developer, as well as an asset management subsidiary. The latter offers the option of ongoing management and monitoring of projects, which creates added value for the buyer due to the company's comprehensive knowledge of the installations and their close local network of customers. Smartenergy has a significant portfolio of solar projects and developments in Portugal and Spain.



End of ad hoc announcement
Language: English
Company: Edisun Power Europe AG
Universitätsstrasse 51
8006 Zürich
Switzerland
Phone: +41 44 266 61 20
Fax: +41 44 266 61 22
E-mail: info@edisunpower.com
Internet: www.edisunpower.com
ISIN: CH0024736404
Valor: A0KFH3
Listed: SIX Swiss Exchange

 
End of Announcement EQS Group News Service

772317  04-Feb-2019 CET/CEST

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