PPC: Strategic agreement with the groups Kapeluzou and Samara on the acquisition of RES

The Group announces the conclusion of an agreement – a framework for cooperation with Kopelouzo and Samara Groups for the acquisition of an RES portfolio in operation, a total installed capacity of 66,6MW, the acquisition of an RES portfolio under the development of an installed capacity of up to 1.7GW and its joint development with the Kopelouzo and Samara Groups, as well as the acquisition of a 20% stake in the Alexandroupolis S.A. Company, which develops a CCGT (840MW) unit and in which PPC already holds a majority percentage (51%). The 66,6MW in operation acquired by PPC Group concern 2 wind farms with a total installed capacity of 43,3MW that were recently put into operation in southern Evia and Laconia, two areas with high wind potential, and photovoltaic parks with a total installed power of 23,3MW in operation. The portfolio transaction corresponds to an Enterprise Value of EUR 111 million or to 7.2x EV/EBITDA. It is noted that the capitality factor of wind farms is 32% medium-stations, above the country average (27%), while most of the portfolio has a high average energy selling price. In addition, PPC Group will acquire renewable projects under development with a total capacity of 1.7GW in various licensing phases and areas of the Greek territory, at a price of 106m euros, which will further develop with the Kopelouzou and Samara Groups. Finally, PPC buys out the 20% held by DAMCO ENERGY of the Kopelousos Group in Alexandroupolis SA. against 27m euros, and will hold 71% and the statutory majority, with the remaining 29% belonging to the Marketing DEPA. The Alexandroupolis Electric Production S.A. dynamically progresses with the construction of the new 840 MW combined natural gas thermal power cycle (CCGT) in the BI.P. Alexandria. The final purchase agreements and final contractual shareholders are to be completed by the end of the year. For this agreement, PPC Group is expected to offer a price combination of cash and equity. In particular, it will pay €106 million in cash and EUR 70 million in equity with a disposal price of EUR 12,21 resulting from the highest of the 6 month mid-point price and the spot price at the close of 24 September 2024. The acquisition strengthens the PPC Group’s energy portfolio, with major power and high quality RES projects and ensures a large portfolio of wind park licenses in locations with high wind potential and guaranteed access to the network. In addition, PPC increases its share of CCGT Alexandroupolis, a modern technology project that will power the domestic market and neighbouring countries and play a key role in the export of electricity to Southeast Europe. On the occasion of the signing of the agreement, the Chairman and CEO of PPC Group, George Stassis, said: “This acquisition is a new important step in the energy transformation of PPC on the domestic market, based on the gradual withdrawal of lignite units and the increase in investments in RES. With this agreement we greatly strengthen our operating wind potential with modern wind farms in areas with high wind potential, reducing the average age of our portfolio. The addition of an expanded licensing portfolio across the territory confirms the Group’s leadership role and contribution to the country’s green transition, which consists by a majority of wind projects that further diversify our mix. At the same time, we confirm our cooperation with Kopelouzo and Samara Groups for the development of the newly acquired portfolio, groups with long and accredited experience in the development of RES projects.” PricewaterhouseCoopers Business Solutions S.A. (PwC) acted as financial advisor and law firms Viza Katrinakis & Associates Lawyers Company and Labadarios & Associates, as legal advisers of PPC in the framework of the conclusion of a binding agreement – framework of cooperation with Kopelouzou and Samara Groups.