A project of strategic acquisition within the framework of the development of Direct Energie Direct Energie, the 3rd French actor in electricity and gas, announces that it has entered into exclusive negotiations for the acquisition with Lucia Holding 100% of the shares of Quadran, one of the main producers of renewables in France. This operation would be on a perimeter, integrating the activities of land-based wind, solar, hydroelectric, and biogas in France of Quadran. With this acquisition, Direct Energie confirms its position as a global player integrated with a mix of production diversified and a strategic position in the supply.
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Following the recent acquisitions of two natural gas power plants with a combined capacity of approximately 800 MW, the Group Direct Energie continues its strategy of vertical integration in accordance with its objective to provide medium-term production mix is diversified and consistent with the objectives set by France’s energy transition. This reconciliation would constitute a major step that would allow the Group Direct Energie to increase its production capacity and securing its future margins in a context of business growth to be very strong. “We look forward to this project of an alliance with a major player of renewable energy located in the territory, and enjoying a local anchorage fort. This project further strengthens the Group’s solidity and its growth prospects, ” said Xavier Caïtucoli, President and ceo of Direct Energy
June 15, 2017 Quadran : a flagship national renewable energy Quadran is one of the first independent producers of renewable energy French. Integrated operator present on nearly 200 points of production distributed on the whole French territory, metropolitan and overseas, the company develops, builds and operates plants for the production of electricity from renewable energy sources (wind, solar, hydro, biogas).
December 31, 2016, the perimeter described by the proposed acquisition had a park that has a gross power overall of the order of 363MW (243 MW net reported rates of detention). Of January 2017 end of 2018 Quadran plans to implement nearly 450 MW of additional, mainly in wind power (about 2/3) and photovoltaics (about 1/3), for an estimated investment of 530 Million euros, bringing the installed capacity to over 800 MW in gross.
This program is very advanced, the company Quadran has already commissioned over 80 MW additional since January 1, 20171. In addition, Quadran also has significant prospects for development thanks to a portfolio of projects at different stages of maturity representing approximately 2,000 MW. In this context, the perimeter described by the proposed acquisition, which carried a net financial debt of approximately 265 M on December 31, 2016, is expected to generate EBITDA2 of more than 40 M in 2017, more than 60 M in 2018, and more than 100 M in 2019. Overview of the proposed transaction The purchase price under the terms of the exclusivity for the areas in question at the date of completion, is of the order of € 303 million. This amount is subject to a mechanism of price supplement of a maximum amount of € 113 million, payable primarily by the pace of commissioning of many projects in course of construction by Quadran, by mid-2019. It is clarified that the additional price could be paid to the height of 75 M per issue, immediately and in the long term, of new shares, Direct Energy at a price equal to the weighted average market price during the twenty trading days preceding this announcement, 49,205 euros per share.
To finance the transaction, Direct Energy has already secured a range of facilities underwritten on a firm basis by BNP Paribas which will finance all of its commitments. In this framework, the group is planning to carry out a capital increase in the amount of approximately 100 Million, the terms of which will be defined later. The transaction is expected to be finalized by the end of the year 2017 subject to receipt of necessary regulatory approvals, including from the Competition Authority in respect of the notification of concentration operations, and remains subject to the consultation process of staff representative bodies. Direct Energie is advised for the acquisition by Gentlemen Husbands & Partners and BNP Paribas. 1 www.quadran.fr/index.php/fr/actualites/500-mw-de-puissance-installee-le-groupe-quadran-franchit-un-nouveau-cap-et-met-en-place-un-euro-pp-green-de-46-m-grace-a-l-appui-du-groupe-credit-agricole 2 Definition identical to that contained in note 26.3 to the consolidated annual accounts of 2016, the Group Direct Energie June 15, 2017 Direct Energy organizes on June 21, a meeting for analysts and investors at 10.00 am (CET) in its premises, 2 bis, rue Louis-Armand, Paris.
A detailed presentation will be available in French and in English on the website of Direct Energie prior to the conference: www.direct-energie.com
This press release does not constitute and shall not be deemed to constitute an offer of securities in France, the United States or in any other country. In application of commission implementing regulation (EU) 2016/1055 of the Commission of 29 June 2016 laying down implementing technical standards concerning the technical arrangements for the publication and deferral of inside information in accordance with regulation (EU) n°596/2014 of the european Parliament and of the Council, this news Release may contain privileged information and has been communicated to the broadcaster authorized to Direct Energy on June 15, 2017 at 20: 30 Paris time.
This press release contains prospective data, based on various assumptions. These data and assumptions are likely to change or be modified due to uncertainties related notably to the economic, financial, competitive, regulatory and fiscal or other factors that Direct Energy would not have knowledge at the date of this press release.
The encrypted data is historical about the Group, Quadran included in this press release have been provided to Direct Energy by the Group Quadran, in the framework of the acquisition process of the Group Quadran. The encrypted data is estimated and the objectives relating to the Group Quadran are based on information made available to Direct Energy by the Group Quadran, as adjusted on the basis of certain assumptions and estimates considered reasonable by Direct Energie. The encrypted data relating to the Group Quadran, as well as the estimated financial data relating to the Group Quadran presented in this release have not been subject to an audit or a limited review by the statutory auditors of Direct Energie.
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