According to a letter of intent, Transeastern Power Trust from Canada will take over three operational small hydropower plants in Romania with an overall capacity of 3.65 MW. The company announced a transaction, calculated on a debt-free basis of CAD 7.5 million, or EUR 5 million. On February 1, Transeastern announced a proposed acquisition of a 17 MW wind power plant in the country from RG Renovatio Group Limited, which currently owns greater than 10% of the outstanding units of the trust. The project is operational since 2012, it generates 45 GWh annually, and has an off-take agreement in place, the press release said. The acquisition is worth CAD 30.6 million, or EUR 20.4 million, after the debt financing on the project at the closing date.
The two takeovers are expected to be executed by April 29 and May 31, respectively. The hydro projects have been active for over two decades and were refurbished in 2012 and 2014. They generate 10 GWh of electricity annually.
At the end of 2014 Transeastern had 5.1 MW of installed capacity, all from small-hydro operations, said J. Colter Eadie, chief executive of Transeastern. Next year the trust acquired 17.6 MW of solar projects. “Pro forma these acquisitions, we will have approximately 43 MW of operating renewable power generation installations. Moreover, our production will be diversified across hydro, wind and solar generation resulting in reduced volatility to our production profile, and increased stability and sustainability in our cash-flows,” he said.
Transeastern is traded at the TSX Venture Exchange in Toronto. The company operates two solar and three wind power plants in Romania, according to information on its website. In July it closed the acquisition of two photovoltaic plants in the country and a CAD 5 million (EUR 3.44 million) secured debt facility provided by Sprott Resource Lending Partnership. A month earlier, Transeastern
