Due to the challenging wind energy business environment in Sweden, Arise AB has been selling its wind energy assets. On September 9th, they entered into an agreement for the sale of the 7.2 MW operating wind farm Skogaby to a fund managed by Allianz Global Investors for a consideration of SEK 110 million (US$13.3 million) on a cash and debt free basis. An additional consideration may be payable to Arise based on future production improvement measures. In addition to the sale, Arise will operate the Wind Farm on behalf of AllianzGI under a 5-year asset management contract.
The transaction will contribute positively to earnings in 2015 by approx. SEK 4.4 to 8.0 million (US$533,000 to $970,000) depending on the outcome of the additional consideration and strengthen Arise’s cash position by at least approx. SEK 43 million(US$5.2 million) including the release of project financing reserve accounts. Furthermore, approx. SEK 72 million (US$8.7 million) of project financing debt, including the cancellation of an interest rate swap, has been repaid as part of the transaction.