Greece: Terna Energy plans to increase capital through private placement

, SEE Energy News

Terna Energy wants to increase its capital through private placement. The company decided to propose to its shareholders this plan and they plan to raise the capital this way by 50.1 million euros.

The decision will be voted on at a general assembly scheduled for 1 September. If approved, the company will issue 4,556,757 common shares of a nominal value of 0.3 euros each, which will be distributed via private placement at an expected price of at least 11 euros. There will be no first preference for existing shareholders. The target audience is international investors, in order to improve the spread and tradeability of the shares.

A similar transaction in January 2018, had extremely positive results in the stock’s tradeability and market value. The sale price is close to the stock’s historic highs and the company expects to draw 50.1 million euros, which will be invested mostly in three wind farms on the island of Evia (330 MW), in Viotia, central Greece (30 MW) and the mountainous central Greek region of Evrytania (67 MW).

The 4,293,268 shares that the company has bought back, representing 3.769 % of the total capital, will not be sold but canceled.

The previous private placement was used to fund wind parks in Greece and the US. Terna Energy group operates, is constructing or has fully licensed RES installations of 1,512 MW in Europe and America. The total installed capacity of the group amounts to 1,390 MW, as it has installed 607 MW in Greece, 651 MW in the US and 132 MW in the rest of southeastern Europe.