FAMUR Group’s Projekt Solartechnik (PST) will raise a total of up to PLN 750 million in exchange for a portfolio of 184 MW of completed solar projects. The buyer is Spoleto, part of the international independent power generation business Alternus Energy Group (Alternus). This is one of the largest deals by value in the history of the PV industry in the entire CEE region.
The agreement signed today with Alternus Energy Group is the first sale of photovoltaic power stations by PST since its inclusion into the FAMUR Group structures. It comprises the sale of 100% of the shares in 32 special purpose vehicles holding photovoltaic farm projects with a total capacity of 184 MW at various stages of development and the construction of solar power stations based on these projects. PST will also provide aftersales maintenance services for the photovoltaic farms involved in the transaction.
Projekt Solartechnik has been supporting the creation of the photovoltaic sector for nearly 15 years, specialising in large-scale plants and PV solutions for companies. PST has been part of the Famur Group since May 2021.
“We are consistently developing our comprehensive offer of services in the area of large-scale photovoltaic plants and PV solutions for the B2B segment. We started from the German market and the construction of one of the largest solar power stations in Europe, our competences also grew following the development of projects in other European countries. Over the past year, our company has undergone a major transformation. We received tangible support from Famur, including in the areas of finances and supply chain. This has allowed us to nearly double our project portfolio, while TDJ supported us in the transaction processes. The current sale of solar projects is the first transaction of this magnitude, but certainly not the last. We have great aspirations and ambitious plans,” says Maciej Marcjanik, President of the Management Board and co-owner of Projekt Solartechnik. “PST is a unique team of professionals who are united by their willingness to act and passion for renewable energy sources,” he adds.
Since May 2021, FAMUR has been pursuing a business diversification strategy aimed at becoming a holding company, investing in green transformation, and achieving approx. 70% of revenues from sources not related to coal by 2024. The company is consistently building a strong position in the area of renewable energy sources (RES) and other prospective industries supporting green transformation. The first step in implementing the new strategy was to engage in the large-scale photovoltaic sector through the acquisition of PST, completed in cooperation with TDJ.
“The transformation of the FAMUR Group business profile into a holding company actively participating in the green transformation is based on our competence and financial potential. This is helped by 100 years of experience in the industry as well as the energy sector and the opportunities arising from the energy transition of Poland. Over the past year, together with PST, we have consistently increased the capacity included in our portfolio of PV projects, which has now reached approximately 1.9 GW. At the same time, we concluded project finance agreements to finance and refinance expenditures related to the construction of photovoltaic farms and issued green bonds with a nominal value of PLN 400 million. To sum up, it was an intense and fruitful period.
The first agreement to sell a package of 184 MW of solar projects to Alternus Energy Group confirms that, together with PST, we have established ourselves as a trusted partner in the international large-scale photovoltaic market. It also proves that the decision to base fast and efficient scaling of operations in this area on the competences of FAMUR, TDJ and PST was the right one,” says Mirosław Bendzera, President of the Management Board of FAMUR SA.
Consolidating the potential of three partners allowed the FAMUR Group to build an entity within its structure, concentrating projects and competencies necessary for the implementation of development plans in the field of large-scale photovoltaics. Initially, the PV portfolio included projects with a capacity of over 1 GW which was dynamically expanded by PST in subsequent months, thanks to the financial support of the FAMUR Group. Currently, these are projects with a total capacity of approx. 1.9 GW, of which 134 MW are under construction and another approx. 200 MW are in the pipeline.
“As a stable and long-term investor, we strongly support the transformation of the FAMUR Group, a key company in our portfolio. I am pleased that we were able to leverage the long-standing experience of our team to conclude a complex PV transaction, one of the largest in the CEE region to date,” says Tomasz Domogała, Chairman of the Supervisory Board and owner of TDJ. “The dynamic development of the PV sector combined with the competencies of TDJ, Famur and PST have created conditions to quickly build a significant position in this area and to take advantage of opportunities arising from the global trend towards low-carbon economies,” he adds.
According to the sales agreement, PST will lead the construction of the photovoltaic farm projects and provide maintenance services. The PV projects under its purview are currently at various stages of development. The finalisation of the transaction of acquiring 100% of shares in special purpose vehicles owning solar projects worth approximately PLN 500 million is expected to take place no later than in November 2022, while the settlement of another approximately PLN 250 million in the construction of solar farms will take place successively over a period of no longer than the next 4 years.
Speaking about the latest agreement, Vincent Browne, Chairman and CEO of Alternus Energy, said:
“This partnership with Projekt Solartechnik enables Alternus to further expand our presence in the Polish market, immediately and over time. Alternus has been and remains very active in Poland with a target to achieve over 1GW of operational PV solar there in the next few years. This transaction further underpins our commitment to Poland and brings our footprint to over 25% of this goal. We are currently in discussions with PST for additional projects in support of this goal and look forward to further announcements in due course. We are very comfortable with long term investment in Poland.”
The following entities were involved in the transaction for the sale of a portfolio of solar farms: PwC – Lead M&A sell-side financial advisor, Clifford Chance – M&A legal counsel, KKMP – supporting legal counsel, and SK&S, which acted as legal counsel to the buyer.