One of the sellers was Romenergo, a general contractor in the field of energy, controlled by Dragos Bilteanu, president of SIF Banat-Crisana (SIF).
Transeastern Power Trust was set up by three Canadians and one Romanian with the aim of operating investments in the field of renewable power in Romania and countries in the region.
According to its representatives, the vehicle plans to operate purchases worth EUR50 million in the next 12 months, with the funds to be raised through a new stock issue in Toronto.
One of the members of Transeastern Power Trust’s board is Petru Lificiu, former president of the Romanian energy watchdog ANRE.
Legal assistance for the Canadians’ first deal in Romania, as well as for the Toronto listing process was secured by BPV Grigorescu Stefanica law firm.
“We see in Romania an appealing potential on the medium and long term as the market is quite fragmented in this field compared with already mature markets, which are more consolidated. At this moment, for instance, there are over 300 owners of micro hydropower stations,” says Colter Eadie, chief executive officer of Transeastern Power Trust.
The vehicle’s move in Romania comes as some of its founders have already accumulated experience in emerging markets. Beside the field of small hydropower stations, the company is also interested in acquisitions in the field of solar energy.
Colter Eadie chose not to specify the value of the deal by which the vehicle acquired 11 small hydropower stations in Romania, but said it was clinched at EBITDA multiple of 5. In general, taking into account deals sealed so far with small hydropower stations, the price per installed MW can range between EUR0.6-1 million.
According with Eadie, the deal involved new projects that need no upgrading investments. The CEO expects investments to be recouped in 5-7 years.
Beside hydropower production, Transeastern Power Trust is also interested in purchasing solar power projects. The vehicle’s representatives say they are not interested in conventional energy projects and as for wind project takeover, largest investors are needed.
Transeastern Power Trust says it will operate further acquisitions in the field of small hydropower stations, with the value of purchases set to reach EUR50 million in the next 12 months.
(English version by Catalina Apostoiu)