Ellomay Capital divests 22.6 MW Italian solar portfolio

Ellomay Capital Ltd. has reported the sale of ten Italian indirect wholly-owned subsidiaries which own twelve photovoltaic plants with an aggregate nominal capacity of approximately 22.6 MW.

The agreed purchase price was EUR41 (US$46) million for the cutoff date of December 31, 2018. The purchase price was adjusted in connection with funds received by the company from the Italian subsidiaries during 2019, resulting in a cash purchase price of approximately EUR38.7 (US$43) million. The Sale and Purchase Agreement governing the sale of the Italian Subsidiaries and the Receivables includes customary representations and warranties and indemnification mechanisms, including specific indemnification for existing risks for a limited time in a non-material amount for the company.

Based on the information currently available to the Ellomay, it estimates that it will record a profit of approximately EUR19 (US$21) million in connection with the sale of the Italian Subsidiaries and Receivables in its financial results for the fourth quarter of 2019. The profit currently expected to be recorded is an unaudited and unreviewed estimate and the actual results may be different from this estimation.