Sale of Nelja Energia, the largest renewable IPP in Baltic States

Augusta & Co (“Augusta”) is pleased to announce the sale of Nelja Energia (“Nelja”), the largest renewable energy IPP in the Baltic States, to Enefit Green (“Enefit Green”), the renewable energy division of Estonian state-owned utility Eesti Energia (“Eesti”). The shares are being acquired for a cash consideration of €289 million plus the assumption of €204 million in net debt.

Augusta & Co in London and Superia Corporate Finance in Tallinn jointly advised Norwegian utility Vardar AS (“Vardar”) on the sale of their 77% shareholding in Nelja. The transaction encompasses 100% of the shares as the minority shareholders are exiting Nelja alongside Vardar.

Closing of the transaction is subject to regulatory approval from the Estonian, Latvian and Lithuanian competition authorities.

Nelja has a total installed wind capacity of 287MW in Estonia and Lithuania, biomass CHP and wood pellet production in Latvia and minority stakes in two biogas CHPs in Estonia. In addition the company has a substantial pipeline of wind projects under development across the Baltics.

Enefit Green owns and operates four wind farms in Estonia with total capacity of 111MW, three combined heat and power plants in Estonia and Latvia, a hydro power plant and a solar power plant.

Vardar is the regional energy utility of Buskerud County in Norway, owned by Buskerud County Administration. The owners of Vardar have taken a strategic decision to divest Vardar’s interest in renewables in the Baltics in order to focus on hydropower in Norway.

Thorleif Leifsen, CEO at Vardar commented: “Following the reshaping of our strategic focus in 2016 this sale was an important milestone. We are very pleased with how Nelja Energia has evolved throughout our ownership period and the transaction reflects the strength of the assets in the company. Augusta in collaboration with Superia ran a fast-paced and rigorous transaction process, which attracted a broad range of investors. We were impressed by how our advisors developed and sustained competitive tension, which resulted in a successful deal for us.”