Solar Millennium: Insolvency administrator sells Arenales shares
Erlangen, 31 July 2012. Today, the insolvency administrator of Solar Millennium AG, Volker Böhm, has sold Solar Millennium’s 26 per cent stake in the project development company for Spanish solar power plant Arenales. Buyer is STEAG 1 Beteiligungsgesellschaft GmbH, a wholly owned subsidiary of STEAG, the fifth largest German power company.
The sale provides Solar Millennium AG with the invested equity plus a mark-up, taking the purchase price up to the double-digit million euro range. After the sale of the interest in Andasol 3 just over two weeks ago, insolvency administrator Böhm has thus managed again to further boost quota prospects for Solar Millennium’s creditors.
The Arenales power plant is currently in construction. At the beginning of the year, the continuation of the project was successfully secured despite the insolvency of Solar Millennium AG. This was the basis for the now accomplished sale. However, the signing of the purchase agreement faced a number of challenges. It was only after long negotiations that the banking syndicate, which is composed of 8 financing banks, and the co-investors RREEF (49%) and OHLI (25%) approved the transaction. “The sale to STEAG means that an ideal partner has entered, securing the continuation of the project,” insolvency administrator Böhm emphasized after the purchase agreement was signed. “I am glad that we were able to solve all of the issues together with the banks and the other investors. This applies all the more, as the starting position was more than difficult.”
The purchase agreement was signed and notarially certified today and will now be presented to the banks and the relevant anti-trust authorities for a formal approval. Their approval is deemed certain, however. Approval procedures are expected to be concluded in September.
The 50 megawatt solar power plant Arenales is built near the city of Morón de la Frontera (province of Sevilla/Andalusia). Solar Millennium AG had purchased the stake sold today in 2011.
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This press release constitutes neither an offer to sell nor the solicitation of an offer to buy any securities of Solar Millennium AG. The press release shall not form the basis for investment decisions regarding securities of the company. Any such investment decision of a prospective investor shall be based solely on such prospective investor's own investigations and assessments.
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