The total consideration from the divestment of the project amounts to approximately €100 million, of which €75 million is fixed and paid on closing, and €25 million is variable consideration payable upon completion of the construction of the project.
The divestment is expected to have a positive impact on earnings of approximately €90 million in total over the years 2022 to 2025, of which approximately €65 million will be realised at closing. The variable portion of the consideration to be realised is dependent upon how construction of the project progresses in relation to programme and budget. Furthermore, Arise will manage the construction and, once operational, manage the project on behalf of Foresight through construction and asset management agreements.
In connection with the transaction, Arise shall invest approximately €17 million into the project and thereby acquire approximately 9% equity stake in the project, which aligns well with Arise’s ambition to become a more dynamic developer, focused on maximising the value created via its project portfolio.
Siemens Gamesa will be supplying 42 turbines with a total nominal capacity of 277 MW, and the wind farm is expected to be commissioned in the beginning of 2025.
Arise was advised by DNB Markets and Setterwalls Advokatbyrå AB in the transaction.
Per-Erik Eriksson, CEO Arise, said: “We are very happy to have realised the company’s largest project to date under these market conditions. We have a longstanding relationship with both Foresight and Siemens Gamesa, not least since the sale of Skaftåsen in 2019, and this partnership is strengthened further through the Kölvallen project. I am pleased that we have had the opportunity to invest in the project, which is the company’s best ever in terms of production capacity, and further illustrates our flexibility as well as an ambition to contribute to the expansion of renewable power production from an owner’s perspective. Once operational, Kölvallen will contribute approximately 1 TWh renewable production annually. This successful project is founded on strong partnerships and team collaboration from start to finish, and we look forward to successfully delivering Kölvallen together with our partners.”
