SBI Offshore buying majority stake in solar assets

A cash and shares transaction has been announced for 51% stakes in four photovoltaic plants in Bulgaria and two operating companies operated by Gräss Group from Germany. SBI Offshore, listed on the Singapore Exchange, said it will pay SGD 13.97 million (EUR 9.03 million) to its German partner, and assets will be injected into Graess Energy Pte Ltd, its Singapore-based joint venture with a 51% stake, to construct, own, and operate solar photovoltaic energy systems and plants.

SBI Offshore will pay the Gräss Group EUR 1.49 million in cash and issue 44 million new shares at 171 euro cent, worth EUR 7.56 million. The latter will enlarge SBI Offshore’s issued share capital to 293,680,100 shares. The issue price per consideration share represents a 15.72% premium over the volume weighted average price for the trades of SBI Offshore on July 30, the press release said.

Solar power plants at various locations in Bulgaria have an installed capacity of 16.3 MW. They have been operating since 2012 with 20-year power purchase agreements, and were so far wholly owned by the Gräss Group. SBI Offshore will acquire a 51% stake in Gräss Engineering GmbH, an engineering, procurement and construction company, and Gräss Operation SBI Offshore Limited Maintenance GmbH which provides operation and maintenance services. The two German-based companies were wholly owned by the Gräss Group.

Chan Lai Thong, Executive Chairman of SBI Offshore, said: “This acquisition will provide us the track record and capabilities to accelerate SBI Offshore’s foray into solar energy, and enable Gräss Energy to tap strategic growth opportunities in Asia.”