Trading Emissions PLC sells PV portfolio in Italy

Trading Emissions PLC has announced the sale of a portion of its Italian solar portfolio.

The company's ultimately wholly owned subsidiary, TEP Solar Holdings Limited (TEPS), has entered into a sales and purchase agreement (SPA) with a member of the Sonnedix group, an independent solar power producer with plants at various stages of maturity located globally, including Italy, in respect of the sale of its entire interest in two Italian subsidiaries, Etuno Srl and Solar Energy Italia 6 Srl (also known as Librandello), comprising three ground-mounted solar photovoltaic plants located in Basciano and Cupello in Abruzzo and Chiaramonte Gulfi in Sicily respectively, with combined capacity of 11.2MW.

The aggregate net proceeds from the sale of the Investments, after allowing for transaction costs, are estimated to be €8.5 million (US$9.5 million). Under the terms of the SPA, completion and receipt of the sales proceeds are subject to various conditions precedent being fulfilled by TEPS no later than 14 December 2016. Of the payment by Sonnedix at completion, €3 million will be deposited in escrow, to be released to TEPS as to €1 million on the first anniversary after completion and the remaining €2 million on the second anniversary after completion, subject to no claims having been received pursuant to indemnities provided by TEPS customary for this type of transaction.

Trading Emissions PLC was represented and advised in this transaction by ValeCap Srl and Orrick, Herrington & Sutcliffe LLP.