TORONTO, ONTARIO--(Marketwired - July 20, 2017) -
NOT FOR DISTRIBUTION IN THE UNITED STATES OR OVER UNITED STATES WIRE SERVICES
Transeastern Power Trust ("Transeastern" or the "Trust") (TSX VENTURE:TEP.UN)(TSX VENTURE:TEP.DB) is pleased to announce that it has signed a binding agreement with OMV Petrom for the acquisition of OMV Petrom Wind Power SRL operating a 45 MW wind farm located in the Dobrogea Region, Romania (the "Dorobantu Wind Project").
The Dorobantu Wind Project is equipped with 15 Vestas-V90 turbines, each with a capacity of 3 MW. The construction of the Dorobantu Wind Project commenced in the second half of 2010 and was finalized in July 2011; commercial operations started on October 1st, 2011. In 2016, the Dorobantu Wind Project generated a net electrical output of 83,867 MWh.
The net purchase price of the Dorobantu Wind Project is EUR23.0 million. Closing of the acquisition is subject to various conditions precedent. The Trust will be proceeding with finalizing the related financings. Assuming all necessary conditions are met, the Trust anticipates that the acquisition will close before the end of 2017. AcAp Advisory was the sole financial advisor to Transeastern.
Mr. J. Colter Eadie, Chief Executive Officer of Transeastern, commented: "We are pleased to have signed the acquisition agreement with OMV Petrom for the Dorobantu Wind Project. Upon completion, this acquisition will represent a major milestone for Transeastern. This operation, which will be our largest acquisition to date, has six years of consistent operating performance and will approximately double our power production capacity, forecast revenues, and operating margin. We look forward to continuing to expand the portfolio of energy assets of the Trust noting that, with this acquisition, we will have increased Transeastern's overall generation capacity by more than tenfold since the Trust's initial public offering just three years ago."
About Transeastern
The Trust, through its direct and indirect subsidiaries in Canada, the Netherlands and Romania, has been formed to acquire interests in renewable energy assets in Romania, other countries in Europe and abroad that can provide stable cash flow to the Trust and a suitable risk-adjusted return on investment. The Trust seeks to provide investors with long-term, stable distributions, while preserving the capital value of its investment portfolio through investment, principally in a range of operational assets, which generate electricity from renewable energy sources, with a particular focus on solar and hydro power. The Trust intends to qualify as a "mutual fund trust" under the Income Tax Act (Canada) (the "Tax Act"). The Trust will not be a "SIFT trust" (as defined in the Tax Act), provided that the Trust complies at all times with its investment restriction which precludes the Trust from holding any "non-portfolio property" (as defined in the Tax Act). All material information about the Trust may be found under Transeastern's issuer profile at www.sedar.com.