Shell acquires interest in US solar energy plant company
(Reuters) - Royal Dutch Shell Plc said on Monday it would acquire a 43.8 percent stake in the solar company Silicon Ranch Corp from investment manager Partners Group, as part of its new energies power portfolio.
Shell said it has signed another agreement with the privately held company, which provides it the chance to raise its stake in Silicon Ranch after 2021.
The deal is expected to close in the first quarter of this year, the company said.
(Reporting by Divya Grover in Bengaluru Editing by Chizu Nomiyama)
SILICON RANCH Corporation, a U.S. developer, owner, and operator of solar energy plants, announced today that it has signed an agreement to make Shell its largest shareholder. As part of the agreement, Shell will acquire a 43.83% interest in Silicon Ranch from Partners Group, the global private markets investment manager, for up to $217 million in cash based on Silicon Ranch performance, with the possibility to increase its position after 2021. Partners Group will continue to support Silicon Ranch through a newly issued junior debt financing simultaneous with the closing of the sale. Subject to regulatory approvals, the transaction is expected to close in Q1 2018.
Nashville-based Silicon Ranch will continue to operate under its existing management and the Silicon Ranch brand. The fast-growing business has doubled its operating portfolio for three consecutive years, with approximately 880 megawatts of photovoltaic (PV) systems that are contracted, under construction, or operating in 14 states from New York to California, and close to 1 gigawatt more in its development pipeline.
The company has been a first-mover in a number of U.S. states and has deployed a differentiated, demand-driven approach to business development across a diverse customer set, with particular emphasis on building long-term relationships with electric cooperatives, military partners, and corporate customers across the country. The transaction will enable Silicon Ranch to accelerate its growth strategy by developing new projects, entering new markets, and expanding product offerings across its portfolio. The strategic partnership provides Shell a platform to establish a successful global solar business by aligning with a proven team in the second largest solar market in the world.
(Press Release from PRNewsWire)
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