Prime Energy's Strategic European Deal Collapses
Translated & summarized from TheMarker by baba
Israeli renewable energy firm Prime Energy has ended talks to acquire a controlling stake in a Spanish company operating across Europe. The deal, announced in June, would have involved an investment of up to 350 million euros. The target company has a solar facility and a significant pipeline of renewable energy projects. Prime Energy cited the lack of a binding agreement for the termination of negotiations.
The story in 5 lines · by baba
- Prime Energy terminated negotiations for a controlling stake in a Spanish renewable energy company.
- The deal would have involved an investment of up to 350 million euros by Prime Energy.
- The target company operates in Spain, Germany, and Italy with existing and pipeline projects.
- A binding agreement was not reached, leading to the collapse of the strategic transaction.
- The acquisition was initially announced as a significant European expansion for Prime Energy.
Renewable energy company Prime Energy announced on Thursday the termination of negotiations to acquire a controlling stake in a Spanish private company. The target company operates in Spain, Germany, and Italy. In a statement to investors, Prime Energy stated that "discussions between the parties regarding the transaction have concluded, without a binding agreement for its execution being signed."
Prime Energy had initially announced a non-binding memorandum of understanding in June for the investment and acquisition. The deal would have seen Prime Energy invest up to 350 million euros to develop the company's assets. The acquisition was based on a current valuation in the tens of millions of euros before the investment.
The Spanish company possesses an 82-megawatt solar facility and a project pipeline of approximately 400 megawatts. A significant portion of these projects have already received grid connection approval, and energy storage facilities are planned alongside them. The transaction would have diluted the stakes of current shareholders to 20%, with an option for Prime Energy to purchase the remaining shares.
When the deal was first announced in June, Yaron Kikoz, Deputy Chairman of the Board and a controlling shareholder, described the investment agreement as a strategic milestone for Prime Energy's growth vision and expansion into the European energy market, highlighting the target company's experienced team and substantial energy storage pipeline.
