Greece, Motor Oil’s renewables subsidiary looking for new RES projects

, SEE Energy News

Motor Oil Renewable Energy (MORE), the renewables subsidiary of Greek oil refiner Motor Oil, said that its RES portfolio will expand to more than 1 GW, following the acquiaition of renewables arm of the construction group Ellaktor. The new projects will also include energy storage, as well as entrance to foreign RES market.

MORE should complete its deal with Ellaktor by the end of the year. The company estimates its future earnings before taxes, interest, depreciation and amortization (EBITDA) at around 130 million euros and capital investments at 1.6 billion euros.

In May, the Vardinogiannis Group, which controls Motor Oil, has reached an agreement worth more than 930 million euros with the shareholders of construction group Ellaktor. The takeover of 29.87 % stake in Ellaktor is already agreed, while the Group is still negotiating the acquisition of 75 % of Ellaktor’s renewable energy sources arm. Motor Oil confirmed that it has agreed to buy 104 million shares at a price of 1.75 euros/share, for a total sum of 182 million euros.

The Vardinogiannis Group has agreed to a provisional deal for takeover of 75 % stake in Ellaktor’s RES activities, with the creation of a new company to absorb the RES portfolio that currently amounts to 493 MW, as well as a series of projects under construction with a total capacity in excess of 1.6 GW. It has been agreed that the value of that company will amount to 1 billion euros, meaning that the 75 % stake Motor Oil will acquire amounts to 750 million euros.