Engyco plans to become first listed European solar utility with €1bn IPO in London

Engyco PLC intends to become the first listed European solar power utility company, and plans to raise up to €1bn via a listing on the London Stock Exchange. The company intends to acquire producing solar assets in Spain, where it already has agreements from vendors for €640 million worth of solar assets with a capacity of 86MW.

“The opportunity that Engyco has identified is compelling and the team which has been assembled to pursue it could not be stronger”, Engyco chairman John Roberts commented. “The assets which we intend to manage enjoy both favourable operating conditions and a highly attractive pricing regime.

According to Engyco, Spain’s attractive government-backed feed-in tariff regime during in 2007/08, and the abundance of available financing at that time, led to a very large quantity of solar projects being built, often by owners for whom solar power assets were a non-core activity. Accordingly, the company noted that in 2008, Spain accounted for half of the world’s solar new builds and approximately 20% of global aggregate capacity.

“Since the end of 2008, the cost of capital has risen sharply and Spain has experienced a collapse in its real estate, construction and property sectors. As a result, many owners of solar assets are willing to sell these non-core assets, which provides a plentiful supply of operating solar assets”, Engyco stated.

Through the listing, Engyco intends to accelerate its acquisition strategy. Following the acquisitions, the company plans to utilize its technical expertise and management team to make operational and financing improvements to the project portfolio and in turn improve the productivity and economic returns of the assets.

The company’s board boasts a wealth of experience, featuring a number of utility-industry heavyweights, including former United Utilities PLC (LSE:UU)chief executive John Roberts as Engyco’s non-executive chairman. He is currently a non-executive director of International Power PLC (LSE: IPR)and of Blackrock New Energy Investment Trust.  The former chairman of Red Eléctrica de España, Pedro Mielgo, is a non-executive director. Engyco's CEO-designate Thomas Krupke is leaving his position as the CEO of SOLON SE, a German maker of solar modules and photovoltaic power plants. SOLON’s co-founder Alexander Voigt is Engyco’s executive vice chairman.

The management team also includes Mark Kirkland, former FD of Raven Mount Group PLC, as the company’s chief financial officer. Northumbrian Water Group PLC's non-executive director Martin Nègre, former US ambassodor to Brazil and Costa Rica John Danilovich, global stretegist Charles Gave who launched research firm Cecogest and Q-Cells co-founder Dr. Thomas van Aubel are non-executive directors of Engyco.

“I am confident that we will be successful in achieving our objectives, including that of becoming the first UK listed solar utility”, CEO Roberts added.

http://www.proactiveinvestors.co.uk/companies/news/15116/engyco-plans-to-become-first-listed-european-solar-utility-with-1bn-ipo-in-london-15116.html