TIDMGLO
RNS Number : 6469J
ContourGlobal PLC
06 December 2018
THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION AS DEFINED UNDER
THE MARKET ABUSE REGULATION (EU) NO. 596/2014.
6 December 2018
ContourGlobal plc
Sale of minority interest in Spanish Concentrating Solar
Power Facilities, and Trading Update
Minority Sale: Overview of Transaction
ContourGlobal plc today announces that it has reached an
agreement to sell a 49% interest in the company's 250 MW
Concentrated Solar Power facilities ("CSP assets") in the southwest
of Spain to a fund advised by Credit Suisse Energy Infrastructure
Partners AG ("CSEIP").
The total consideration payable for the 49% stake is c. EUR134
million to be paid in cash. This represents a premium of c. EUR65
million to ContourGlobal's proportionate net investment in the 49%
stake of c.EUR69 million.[1] Completion of the transaction is
expected to occur in one or more closings subject to the
satisfaction of various customary closing conditions which are
expected to be fulfilled by the end of the second quarter of
2019.
As part of the agreement, ContourGlobal will continue to manage,
operate and maintain the five assets.
Trading Update
Business performance has been good despite renewable resources
performing below plan in certain markets. We remain comfortable
with the indicated guidance range for 2018 of Adjusted EBITDA of
$600-630 million on a constant currency basis.
As at 30 September the financial metrics specified under our
corporate bond indenture are a Non-Guarantor Leverage Ratio of 3.8x
and a Debt Service Coverage Ratio of 7.6x.[2] The company expects
its net debt to Adjusted EBITDA ratio to be approximately 4.5x as
of 31 December.
Joseph C. Brandt, President and Chief Executive Officer of
ContourGlobal, said:
"We are very pleased to expand our partnership with CSEIP in
Europe with our second sale of minority interests this year. CSEIP
is a committed long-term partner and leading investor in the
infrastructure field, combining deep industry expertise with unique
sourcing and distribution capabilities. We look forward to
extending our partnership into new markets.
We continue to see opportunities to enhance shareholder returns
and redeploy capital into our significant growth pipeline by
selling minority stakes in our global portfolio of businesses to
dedicated infrastructure investors looking to invest long-term with
strategic operating partners."
CSP Transaction Details
CSP assets
Developed and commissioned between 2009 and 2012, the CSP assets
comprise five independent 50MW solar plants located in southwest
Spain, producing clean energy equivalent to the electricity demand
of around 161,000 homes. Acquired from Acciona in May 2018, the
plants have an average remaining regulated lifetime of 18 years and
are regulated under the Spanish renewable remuneration scheme,
guaranteeing long-term stable and regulated cash-flows.
Financial Impact
The value of the gross assets attributable to the CSP assets was
EUR1.1 billion as at 30 June 2018 and EBITDA and profit before tax
(unaudited) attributable to the Facilities were EUR110 million and
EUR26 million respectively for the year ended 31 December 2017, in
each case on a 100% basis.
ENQUIRIES
Investor Relations - ContourGlobal
Ross Hawley
Tel: +44 7393 750 733
ross.hawley@contourglobal.com
Media - Brunswick
Charles Pretzlik/Emily Trapnell
Tel: +44 (0) 207 404 5959
contourglobal@brunswickgroup.com
Important Notice
Certain information contained in this announcement, including
any information as to ContourGlobal's strategy, plans or future
financial or operating performance constitutes "forward-looking
statements". These forward-looking statements can be identified by
the use of terminology such as, "aims", "anticipates", "assumes",
"believes", "budgets", "could", "contemplates", "continues",
"estimates", "expects", "intends", "may", "plans", "predicts",
"projects", "schedules", "seeks", "shall", "should", "targets",
"would", "will" or, in each case, their negative or other
variations or comparable terminology. Forward-looking statements
appear in a number of places throughout this announcement and
include, but are not limited to, express or implied statements
relating to ContourGlobal's business strategy and outlook;
ContourGlobal's future results of operations; ContourGlobal's
future financial and market positions; expectations as to future
growth; general economic trends and other trends in the industry in
which ContourGlobal operates; the impact of regulations on
ContourGlobal and its operations; and the competitive environment
in which ContourGlobal operates.
By their nature, forward-looking statements are based upon a
number of estimates and assumptions that, whilst considered
reasonable by the Directors and the Company, are inherently subject
to significant business, economic and competitive uncertainties and
contingencies. Known and unknown factors could cause actual results
to differ materially from those indicated, expressed or implied in
such forward-looking statements. Forward-looking statements are not
guarantees of future performance. Any forward-looking statements in
this announcement reflect the Directors' and the Company's current
view with respect to future events and are subject to certain risks
relating to future events and other risks, uncertainties and
assumptions. The forward-looking statements contained in this
announcement speak only as at the date of this announcement. The
Directors and the Company disclaim any obligation or undertaking to
release publicly any updates or revisions to any forward-looking
statements contained in this announcement to reflect any change in
their expectations or any change in events, conditions or
circumstances on which such statements are based unless required to
do so by applicable law, the UK Prospectus Rules, the UK Listing
Rules, the UK Disclosure Guidance and Transparency Rules of the
Financial Conduct Authority and the Market Abuse Regulation (EU)
No. 596/2014 . You are cautioned against placing undue reliance on
any forward-looking statement in this announcement.
[1] Contour's net equity balance reflects a priority
distribution of approximately EUR40 million from the assets
occurring in the first quarter of 2019.
[2] Capitalized terms have the meaning defined in the indenture
of the EUR750,000,000 ContourGlobal Power Holdings SA Senior
Secured Notes maturing in 2023 and 2025.
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
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