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(Alliance News) - Georgia Capital PLC on Tuesday said it has purchased the remaining 34% stake in Georgian Renewable Power Co from RP Global for USD13.8 million.
The investment company said USD11.8 million of the USD13.8 million represents total equity contributions received from RP Global, as well as an additional consideration for RP Global's technical assistance during the past six years.
Georgia Capital added that it would pay an additional amount of up to USD4.5 million in the event that market electricity sales prices are higher during 2023 to 2025 than its current internal forecasts.
Following this acquisition, the Tbilisi-headquartered company's renewable energy business is comprised of wholly-owned Georgian Renewable Power and the Hydrolea HPPs and Qartli wind farms. It added that it has a pipeline of 350 megawatts in capacity in the medium-term.
Qartli operates a 21 megawatts installed capacity wind power plant, with a 47% average capacity factor. Hydrolea operates three hydro power plants, which have an aggregate installed capacity of 21 megawatts, and has a greenfield run-of-river type project targeting a capacity of 19 megawatts.
"I would like to express my gratitude to RP Global for their support in the development of our renewable energy platform to the point where the group's management team can now successfully take the business forward independently. The minority acquisition gives us greater flexibility to execute our planned growth strategy to become a key player in the fast-growing Georgian electricity market," said Georgia Capital Chief Executive & Chair Irakli Gilauri.
The stock was trading up 0.3% on Tuesday morning in London at 743.53 pence each.
By Ife Taiwo; ifetaiwo@alliancenews.com
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