Business
Agreement to acquire Greek waste-to-energy project
Agreement to acquire Greek waste-to-energy project.
About this update from Forgent Plc
[{"type":"text","content":"\n \n \n \n RNS Number : 9290O\n EQTEC PLC\n 13 October 2021\n \n \n \n \n \n \n \n 13 October 2021\n \n \n EQTEC plc\n \n \n (\"EQTEC\", the \"Company\" or the \"Group\")\n \n \n Agreement to acquire waste-to-energy project in Greece\n \n \n \n \n \n EQTEC plc (AIM: EQT), \n a world-leading gasification solutions company building a cleaner waste-to-energy industry\n , is pleased to announce that it \n has signed an agreement for the proposed acquisition of a \n 5MWe project in Drama (the \"Project\"), North Eastern Greece, through the recently established EQTEC Synergy Projects Limited (\"Synergy Aegean\"), a joint venture (\"JV\") between EQTEC and its Greek strategic partners, German EPC company, ewerGy GmbH (\"ewerGy\") (operating in Greece via its local partner, ECO Hellas M IKE). \n \n \n \n \n \n Once acquired, the JV will lead the development of a new biomass-to-energy plant (the \"Plant\"), generating 5MW green electricity from locally and sustainably sourced forestry waste. Due diligence, including financial and technical feasibility, has been completed.\n \n \n \n \n \n Completion of the acquisition of the Project is subject to entering into of a Project Purchase Agreement, customary for this type of transaction.\n \n \n \n \n \n Highlights:\n \n \n \n \n \n \n \n \n · \n \n \n \n \n Synergy Aegean\n to acquire the biomass-to-energy Project in Drama, North Eastern Greece;\n \n \n \n \n \n \n · \n \n \n \n \n The JV has signed a Preliminary Project Acquisition (the \"Agreement\") for the acquisition of the Project via a Special Purpose Vehicle (\"SPV\") to acquire the assets of the Project;\n \n \n \n \n \n \n · \n \n \n \n \n The JV \n is in discussions with a number of local banks to provide the debt for the project funding at a Loan to Value (\"LTV\") ranging between 70 and 80%;\n \n \n \n \n \n \n · \n \n \n \n \n Active discussions with investors for the equity funding for the SPV are currently underway, toward Financial Close targeted for Q3 2022;\n \n \n \n \n \n \n · \n \n \n \n \n The Plant\n , once operational, is expected to achieve the Company's baseline target unlevered IRR of 12% and the JV team have identified commercial opportunities that if implemented, will further increase project returns;\n \n \n \n \n \n \n · \n \n \n \n \n The acquisition involves all the ...