Singapore-listed offshore services provider SBI Offshore has invested SGD13.97 million (USD10.2 million) to obtain 51% stake in solar power assets from its German partner Gräss Group for business diversification.
The proposed acquisition includes four revenue-generating solar photovoltaic power plants and systems at various locations in Bulgaria, and two operating companies in a cash and shares transaction.
The assets will be injected into Graess Energy, its 51%-owned Singapore-based joint venture, to construct, own, and operate solar photovoltaic energy systems and plants.
“The injection of our assets, together with our combined strengths, will position Graess Energy in the industry and expedite its endeavour to capture strategic market opportunities in the region,” said Gräss Group founder Harald Herbert Gräss.
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In the meantime, SBI Offshore will pay Gräss Group SGD2.3 million in cash and issue 44 million new or consideration shares at SGD0.265 each, which is worth SGD11.7 million.
The newly issued shares will enlarge SBI Offshore’s share capital to 293,680,100 shares.
SBI Offshore stated in its filing to the Singapore Exchange that the revenue and profit from acquired assets expected to kick in from the second half of 2015. Moreover, the offshore services company believes that the injection of assets into Graess Energy will help to jump-start the company’s foray into clean energy.