Brazilian renewable energy company Omega Geração (Omega) has signed an agreement to acquire a 50% stake in Brazil’s largest operating solar complex, Pirapora, for R$1.1bn ($283.03m).
Under the agreement, Omega will acquire a 30% stake from EDF Energies Nouvelles’ subsidiary EDF EN do Brasil and the entire 20% from Canadian Solar UK Projects.
In October 2016, EDF acquired 80% of the project, which is located in Brazil’s Minas Gerais state.
Completion of the transaction is subject to customary closing conditions including the Brazilian antitrust authority approval, as well as creditor’s consent. Omega anticipates the deal to be completed by the end of this year.
Upon completion of the transaction, Omega and EDF Renewables will equally own Pirapora complex and will jointly manage the solar power facility.
Omega CEO Antonio Augusto Torres de Bastos Filho said: “With Pirapora, we will add an excellent asset to our portfolio that meets our high-quality standards and makes our cash flows even more predictable due to geographic and source diversification.
“Our post-deal portfolio will have 62% of wind, 25% of solar and 13% of hydroelectric energy. We are also thrilled to continue expanding our investments in Minas Gerais, the state where Omega started its journey ten years ago with the development of Pipoca hydroelectric plant.”
Pirapora complex features 11 plants with a total installed capacity of 321MW, enough to power 400,000 homes in the region.
Bastos further added: “In addition to the favourable geographical location, the projects have sold 100% of their energy output through 20-year Power Purchase Agreements (PPAs) awarded in the Reserve Energy Auctions, which ensures a long and stable revenue flow.”
Last December, Omega bought 100% of the 220.8MW wind complex Delta 3, located in Maranhão state for an enterprise value of R$1.97bn ($504m).