Ellomay Capital subsidiary to buy Spain’s Talasol Solar
Israel-based Ellomay Capital, though one of its subsidiaries, has signed a share purchase agreement (SPA) to buy Talasol Solar, which is involved in the construction of a 300MW photovoltaic (PV) power plant in Talaván, Cáceres, Spain.
The PV project is expected to require around $245m to $278m for completion, with construction planned to begin within a period of 10-15 months.
According to the new SPA, the purchase price for Talasol's shares is around $10.9m, which requires to be deposited in escrow.
The newly signed SPA includes several conditions subsequent, the occurrence of any of which by 30 June 2018 will allow Ellomay to automatically terminate the SPA.
The conditions featured in the SPA also include receipt of certain regulatory approvals and entry into certain material agreements.
In addition, the SPA provides the sellers with rights to terminate the deal in the event the regulatory approvals are granted and Ellomay or Talasol fail to take certain actions required in order to advance the PVproject.
Ellomay Capital CEO and director Ran Fridrich said: “The Talasol project is a material project, which we believe is going to be one of the largest PV projects in Europe. The Talasol project is expected to operate based on long-term power purchase agreements (PPAs) with utilities and/or electricity brokers.
“Ellomay has been active in the Spanish PV market since 2012. The Talasol opportunity intrigued us, and we received good feedback on the Project's location and characteristics and on the expected future of the Spanish solar market from various market players, such as EPC contractors, utilities, brokers, investment banks and commercial banks in the Spanish and European markets.
“The high radiation in the Spanish peninsula, the significant decline of the panel prices and the relatively attractive finance costs, are expected to allow the Spanish solar market to become an advanced grid parity market.”
Currently, the company has invested in around 7.9MW of PV power plants in Spain.