Etrion Sells 70% Stake in Solar Asset in Chile to Innergex for about $46.6 Mn

Etrion Sells 70% Stake in Solar Asset in Chile to Innergex for about $46.6 Mn

Switzerland headquartered Etrion Corporation (Etrion) has completed the sale of its 70 percent shareholding in a solar photovoltaic (PV) power plant, PV Salvador SpA, in northern Chile, to Canada-based Innergex Renewable Energy Chile Spa.

Solar project

This is an independent solar power producer’s last sale of a non-core solar asset outside of Japan.

Etrion owns and operates solar parks in Japan, including 4 operational projects with an aggregate of 57 MW plus 45 MW Niigata solar project which is under construction.

Commenting on the asset sale, Marco Antonio Northland, Chief Executive Officer of Etrion, said that “I am pleased to complete the sale of our solar park in Chile. This was our last non-core asset outside of Japan which was carried at zero value on our balance sheet after being fully deconsolidated in September 2017.”

He further added that “the Salvador sale allows Etrion to further streamline our corporate structure and to continue focus on maximizing the value of our platform in Japan.”

The company said that it has not consolidated Salvador’s financial position and performance since September 30, 2017, when management concluded that Etrion no longer met the control criteria in accordance with IFRS.

Thus, the retained investment in Salvador was accounted for as an equity investment and recorded at a Nil fair value.

On the other hand, Innergex said that it has acquired this 68 MW Salvador PV solar farm for USD 46.6 million in order to diversify further its renewable energy portfolio in Chile.

Besides, it has also acquired 11-year demand-based power purchase agreements (PPAs) covering a total electricity generation of 54.6 GWh/year for about USD 19.5 million.

Moreover, Innergex had acquired both, Salvador solar farm and PPAs, from Etrion Chile SpA, Total Solar Latin America SpA and Holding, and Solventus Salvador SpA.

Speaking on the Salvador solar farm acquisition, Michel Letellier, President and Chief Executive Officer of Innergex, said that “we are proud to announce the completion of our first acquisition with the proceeds from Hydro-Québec’s private placement. The acquisition of Salvador is a strategic one that not only generates a quick return on investment but also diversifies our energy portfolio in South America.”

“Chile is a prime market for us as it offers top quality renewable energy resources combined with growing energy demand. This acquisition is another step forward in Innergex’s international growth and diversification strategy,” added Letellier.

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