We assisted UAB “Ignitis renewables”, a subsidiary of AB “Ignitis grupė” (hereinafter – the Company), in signing a conditional agreement to acquire 100% of the shares in a Latvian company developing a wind and solar project in Latvia (hereinafter – the Agreement), after the approval of the Group’s Management Board.
About the project
Targeted total capacity of the project under development is around 200 MW. The project is in the early stage of development with estimated start of construction in around 2025–2026 and commercial operation date in around 2027–2028. The completed project will operate under market conditions.
Total preliminary investments amount up to EUR 270 million, which includes the project acquisition price and other CAPEX. The payment of the acquisition price depends on achievement of development milestones established in the Agreement. It must be noted that the estimated total return on equity of the project is equal to the levels of similar projects communicated earlier. The expected return is in line with our target return range, i.e., high single-digit to low double-digit on a levered equity basis.
The objective of Ignitis Group companies to consistently increase Green Generation portfolio and reach 4 GW of installed capacity by 2030 is set out in the Ignitis Group strategy (link). Thus, implementation of agreements contributes to the implementation of strategic objectives.
Our involvement and team
We assisted the client on all the transaction-related matters – performed a detailed legal due diligence of the target company, prepared a draft of the share purchase agreements and assisted with negotiations and signing of the transaction documents.
Our team was led by counsel Viktorija Cherkas. The Sorainen team for the transaction also included senior associates Andris Vilisons and Natālija Grāvele.