PPC Takes Over Evryo Group’s 629 MW Renewable Energy Portfolio
PPC has entered into a binding agreement with Evryo Group, owned by funds managed by Macquarie Asset Management, to acquire their renewable energy generation portfolio in Romania, which comprises 629MW RES in operation, and about 145MW in pipeline assets.
The deal has a total enterprise value of approximately EUR 700 million and the overall valuation is in line with previous market transactions, with the total consideration subject to customary adjustments.
The acquisition further strengthens the PPC Group’s growth strategy in Romania and Southeast Europe by adding a significant portfolio of renewable operations, including 600MW onshore wind, 22MW hydro, 6MW BESS, 1MW solar PV installed capacity, and about 145MW pipeline assets.
Upon completion of the agreement, PPC’s renewable energy portfolio in operation in Romania will double and PPC Group’s total installed capacity in operation will reach 5.3 GW.
PPC Group has extensive experience in operating renewable energy projects, with a significant solar portfolio in Greece. This transaction will expand and diversify renewable energy operations by adding large-scale wind and hydro projects in Romania.
The financing of the transaction is structured to be consistent with PPC Group’s financial policy in order to remain well within Group’s target leverage ceiling. Upon completion, the PPC Group will add an estimated EBITDA of EUR 100 million annually.
“This acquisition is a significant new step for PPC Group’s overall growth strategy in Southeast Europe. We are accelerating the development of renewable energy production in Romania by doubling our portfolio of renewable sources in operation, especially wind and hydro power, further diversifying our renewable energy mix, with assets located in the most sought-after regions of Romania, with strong wind speeds. Our regional renewable energy strategy aims to generate power in attractive markets with a diversified technology portfolio. Southeast Europe is an increasingly interconnected market with converging energy prices and thus value can be created from the adjacent synergies in trading, supply and risk diversification,” said Georgios Stassis, Chairman and Chief Executive Officer of PPC Group.
Citigroup Global Markets Europe AG and Euroxx Securities SA are acting as financial advisors and Clifford Chance is acting as legal advisor to PPC Group in connection with the acquisition.
The closing of the Acquisition is expected to occur by the fourth quarter of 2024 and will be subject to certain customary conditions precedent for this type of transaction, including, among other things, clearance from the relevant antitrust authorities.
PPC is the largest electric utility company in South-East Europe, with activities in generation, distribution, grid operation and sales of advanced energy products and services in Greece, Romania and North Macedonia. PPC has a total installed capacity of 11.5 GW, consisting of thermal, hydro and renewables with a total annual generation of around 20 TWh, while in networks the total regulated asset base amounts to around EUR 4.3 billion. PPC Group is the main electricity supplier in Greece and Romania, serving 8.8 million customers in total, providing them with approximately 33 TWh of energy and a wide range of energy products and services. PPC is publicly listed, and its shares are traded on the Main Market of the Athens Stock Exchange.
One of the largest acquisition agreements in Romania of a renewable portfolio
Clifford Chance Badea, the Bucharest office of global law firm Clifford Chance, has advised PPC Group in its agreement with Evryo Group.
The multidisciplinary legal team advising on this landmark deal, with a total enterprise value of approximately EUR 700 million, was coordinated by Partner Nadia Badea and Counsel Loredana Ralea. The core team included Radu Costin (Senior Associate), Lavinia Dinoci (Senior Associate), Carmen Buzenche (Senior Associate), Diana Borcean (Senior Associate), Ecaterina Burlacu (Senior Associate), Eleonora Udroiu (Of-Counsel), Nicolae Grasu (Associate), Roxana Barboi (Associate), and Filip Marinau (Associate) from Bucharest, as well as Partner Alex Cook from the Clifford Chance Munich office.
“Our extended expertise in M&A and Renewable Energy has been essential in advising on one of the largest acquisition agreements in Romania for an operational, mixed green energy portfolio. We are committed to helping our client in its strong commitment to green energy transition, and we are honoured for their trust and appreciation,” Nadia Badea, Head of the M&A Energy Practice in Bucharest, says.
“The successful closing of this matter is extremely rewarding for our M&A Energy practice. We have been working closely with PPC and Macquarie, and our excellent collaboration has streamlined an otherwise intense and complex process. We congratulate all parties involved and we look forward to working with them in the future,” Loredana Ralea adds.
Clifford Chance Badea advised PPC Group throughout the entire transaction, providing support on aspects of due diligence, renewable energy-related regulatory aspects as well as advisory for the elaboration and negotiation of the final documentation.
Clifford Chance Badea clients benefit from the entire experience and know-how of the Clifford Chance offices in countries that are more advanced in the development of renewable energy projects. The local team advises developers, infrastructure funds, utility companies and banks throughout the entire project development cycle of a renewable energy project – sell side or buy side M&A, signing of EPC and O&M contracts, Power Purchase Agreements (PPAs), finance and development contracts, regulatory matters including project amendments, or litigation.
The portfolio of recent transactions includes, among others:
1.Advising UK-based Nala Renewables Limited in its first deal closed in Romania, namely the acquisition from Monsson Group of a ready-to-build photovoltaic park in Caras Severin, with a total installed power of approximately 64 MW.
2.Advising the European Bank for Reconstruction and Development (EBRD) and OTP Bank in relation to the EUR 93-million financing agreement for the construction and operation of the Urleasca Wind Farm (Braila) by Urleasca Wind Farm SRL, the project company equally co-owned by BIG Shopping Centers ltd and MEGA OR ltd.
3.Advising Greek-based Motor Oil Renewable Energy Single Member S.A. (MORE) in the 86-MW deal marking its entry on the Romanian renewable energy market. MORE alongside Premier Energy Group, through Alive Renewable Holding Limited, has acquired its first two new photovoltaic projects, in Buzau County.
4.Advising the Israeli company Nofar Energy Romania, a leader in renewable energy, in the signing of contracts for EPC, O&M and supply of solar energy production equipment for renewable energy projects in Romania with a total installed capacity of 643 MW.
5.Advising Premier Energy, one of the largest renewable energy players in Romania and the Republic of Moldova, in relation to the Initial Public Offering and listing on the Bucharest Stock Exchange amounting to approximately RON 700 million.
6.Advising the arranger banks Citi, Erste, HSBC, JP Morgan and Société Générale in relation to Romania’s inaugural green bonds offer due in 2036, which attracted EUR 2 billion. The Clifford Chance lawyers were also involved in the development of Romania’s Green Bond Framework by the Ministry of Finance, with technical assistance from the World Bank and external advisory from Citibank and HSBC.
7.Advising the arranger banks JP Morgan SE, Citigroup Global Markets Europe AG, ING Bank N.V (which was also the sole sustainability consultant) and BT Capital Partners as co-manager, in the first ESG bonds issue launched by Banca Transilvania, which raised EUR 500 million.
8.Advising the Austrian Group Enery Power Holding in connection with the acquisition and financing of a photovoltaic park in Sarmasag commune, Salaj County, with a projected capacity of 50 MW, from the independent electricity supplier Restart Energy One.
9.Advising Actis, the global investment fund in sustainable infrastructure in relation to the acquisition from UK-based investment company Low Carbon of the majority interest in two renewable energy projects under development in Romania, with an estimated installed capacity of around 1,000 MW.
10.Advising Rezolv Energy, the regional renewable energy platform of global investment fund Actis, in relation to the acquisition of the 1,044 MW solar plant in Arad County from Monsson Group.
11.Advising Enel Green Power Romania in the acquisition of a 90 MW solar portfolio from the Greek group Mytilineos.
12.Advising the bank syndicate including Banca Comerciala Romana S.A. and Erste Group Bank AG in connection with the financing of the acquisition by Austrian Group Enery Power Holding of the renewable energy portfolio held by the Canadian company Jade Power Trust.
13.Advising an Israeli investor in energy projects on the due diligence related to the envisaged development of a solar project in Romania with more than 65 MW.
14.Advising a developer in the sale of a wind power project with an installed capacity of 150 MW.
Clifford Chance has been present in Romania since 2006 and operates now as Clifford Chance Badea. The Bucharest office is fully integrated in the global network and is frequently involved in complex transactions such as syndicated loans, project finance, restructurings, Eurobonds and shares issues on international capital markets, derivatives, companies’ acquisitions by strategic investors or private equity funds, infrastructure and motorway projects, real estate investments etc., as well as domestic and international litigation and arbitration.
