Boralex Inc. (“Boralex” or the “Corporation”) (TSX: BLX) has signed
an agreement for the investment by Energy Infrastructure Partners
(“EIP”) in a 30% stake in Boralex’s assets and development pipeline
in France. The transaction will be completed after the required
consultation of employee representatives and after obtaining the
applicable regulatory approvals. It is expected to close in the
first semester of 2022.
Transaction highlights
- Boralex is
entering into a long-term partnership with EIP, a Switzerland-based
global investment manager specialized in the energy sector, which
will be acquiring a 30% stake in Boralex’s operations in
France.
- This partnership
includes French assets in operation, 1.1 GW to date, as well
as a 1.5 GW portfolio of projects in the French market.
- Boralex’s
operations in France generated EBITDA(A) of €134M ($193M CAD) in
2021.
- This transaction
will result in a pre-money equity valuation of €1,718M ($2,474M
CAD) for all Boralex operations in France, representing an
enterprise value to EBITDA(A) 2021 multiple of 20.3.
- Cash proceeds to
Boralex at transaction close will amount to €532M ($766M CAD) and a
portion thereof will be invested into Boralex operations in France
(through a capital increase).
- Boralex remains
the majority shareholder and manager of its assets in France.
Present in France for over 20 years, Boralex is
a pioneer in developing, building, owning, and operating renewable
energy production sites through its unique model. The Corporation
has expanded to meet the French market’s growing energy needs and
established itself as the largest independent producer of onshore
wind energy in France since 2014.
This partnership will strengthen Boralex’s
position in this market and enable it to accelerate its growth to
meet the ambitious objectives in its Strategic Plan which are, for
France, to increase installed capacity to 1.8 GW in 2025 and up to
3 GW in 2030. Boralex sought a partner with a long-term vision,
able to invest in the company’s future development in wind and
solar power, as well as storage. EIP has all the qualities needed
for Boralex to continue to stand out in the French market.
“We are grateful to the EIP team for the trust
they’ve placed in us. We look forward to joining forces to fulfil
our ambitions alongside a renowned player in our industry who knows
the European renewable energy sector well and who shares our values
of corporate social responsibility. In addition to creating
significant value for our shareholders, this investment illustrates
the quality of our team’s work in France and Canada and lets us
showcase the leading platform we have been building for over 20
years,” said Patrick Decostre, President and CEO.
Boralex remains the majority shareholder and manager of
its assets in France
Through its 70% stake, Boralex remains the
majority shareholder in its French operations.
Boralex also continues to manage all its
operating assets, with a total capacity of over 1 GW, across
nearly 70 French sites. Boralex’s production quality and industrial
expertise in maintaining its assets make it possible to extend the
life of this portfolio, either by signing a power purchase
agreement directly with commercial and industrial customers
(corporate PPA) or as a repowering. Note that current asset sales
contracts have an average remaining life of nine years. Boralex
will also keep managing its portfolio of projects under development
or construction, totalling 1.5 GW in France, and will ensure
their progress continues.
“Partnering with EIP is a great opportunity for
Boralex. With its solid experience in renewable energy and a
significant foothold in Europe, EIP can support the realization of
our ambitions. Our goal was to secure a long-term partnership with
a sector specialist to support our growth. We are very proud of
this achievement,” declared Nicolas Wolff, Vice-President and
General Manager, Boralex Europe.
EIP, the ideal partner for Boralex
Energy Infrastructure Partners (EIP) is a
Switzerland-based, global investment manager focused on high
quality, large-scale renewables and system-critical energy
infrastructure assets. As one of the few specialist energy
investors, EIP works closely with an extensive global industry
network, and brings broad transaction and investment management
experience demonstrated by its long-term collaboration with strong,
top-tier industrial partners.
“For several years, we have been closely
following Boralex, which stands out for its fully integrated
operation, commercialization, financing and top tier development
capabilities. We look forward to working closely with our partner
Boralex to build on their strong track record in the French market
and providing our clients access to this impressive renewable
energy platform,” commented Roland Dörig, Managing Partner,
EIP.
For Boralex, financial advisors Lazard,
Accuracy, KPMG Canada, law firm Kaufhold & Reveillaud Avocats
and technical advisors EPILOGUE Avocats, Mott MacDonald, and
Everoze collaborated extensively on this successful
transaction.
Conference Call – Thursday, February 24, 2022, at 9 a.m.
EST (3 p.m. CET)
Financial analysts and investors are invited to
attend a conference call today, at 9 a.m. EST (3 p.m. CET), during
which Boralex will give more detailed information on the
transaction.
To attend the conference
Dial-in
number: 1-855-453-5257 or 409-330-8829, with access code
1142119 Webcast
link: https://edge.media-server.com/mmc/p/t8fmz7g3
Media and other interested individuals are
invited to listen to the conference and view a presentation which
will be broadcasted live and on a deferred basis on Boralex’s
website at www.boralex.com. A full replay will also be available on
Boralex’s website until February 24, 2023.
Disclaimer regarding forward-looking
statements
Certain statements contained in this press
release, including those relating to the transaction and the
profits resulting from the transaction, are forward-looking
statements based on current expectations within the meaning of
securities legislation. Forward-looking statements are based on
certain assumptions, including assumptions on the performance of
the business based on management’s expectations and production
estimates and other factors; assumptions about EBITDA(A) margins;
and assumptions about the current industry environment and the
general economic environment, competition and financing
availability. Although Boralex believes that the expectations
reflected in the forward-looking statements contained in this press
release are reasonable, Boralex wishes to clarify that, by their
very nature, forward-looking statements involve risks and
uncertainties, and that its results, or the measures it adopts,
could be significantly different from those indicated or underlying
those statements, or could affect the degree to which a given
forward-looking statement is achieved. Unless otherwise specified
by the Corporation, forward-looking statements don’t take into
account the effect that transactions, non-recurring items or other
exceptional items announced or occurring after such statements have
been made may have on the Corporation’s activities. There is no
guarantee that the results, performance or accomplishments, as
expressed or implied in the forward-looking statements, will
materialize. Readers are therefore urged not to rely unduly on
these forward-looking statements. Unless required by applicable
securities legislation, Boralex’s management assumes no obligation
to update or revise forward-looking statements in light of new
information, future events or other changes.
About Boralex
At Boralex, we have been providing affordable
renewable energy accessible to everyone for over 30 years. As a
leader in the Canadian market and France’s largest independent
producer of onshore wind power, we also have facilities in the
United States and development projects in the United Kingdom. Over
the past five years, our installed capacity has more than doubled
to 2.5 GW. We are developing a portfolio of more than 3 GW in wind
and solar projects and nearly 200 MW in storage projects, guided by
our values and our corporate social responsibility (CSR) approach.
Through profitable and sustainable growth, Boralex is actively
participating in the fight against global warming. Thanks to our
fearlessness, our discipline, our expertise and our diversity, we
continue to be an industry leader. Boralex’s shares are listed on
the Toronto Stock Exchange under the ticker symbol BLX.
For more information, visit www.boralex.com or
www.sedar.com. Follow us on Facebook, LinkedIn and Twitter.
About Energy Infrastructure Partners AG
Energy Infrastructure Partners AG (EIP) is a
Switzerland-based manager of collective assets focused on high
quality, large-scale renewables and system-critical energy
infrastructure assets. With over CHF 4 billion under management,
EIP leverages an extensive industry network, broad transaction
experience and close partnerships with energy suppliers and the
public sector in order to develop and manage investment solutions
for institutional investors globally. These clients, primarily
pension funds, insurances and large family offices, seek
investments in long-term, visible cash flow-generating assets that
also contribute to security of energy supply, positive economic,
ecological and social development, and the retirement provision of
the population.
www.energy-infrastructure-partners.com
For more information:
Media |
Investor Relations |
Isabelle FontaineDirector, Public
Affairs and CommunicationsBoralex Inc.819
345-0043isabelle.fontaine@boralex.com |
Stéphane MilotSenior
Director – Investor RelationsBoralex Inc.514
213-1045stephane.milot@boralex.com |
|
|
Media –
France (Agency)Anne MassonDirectrice AgenceOxygen06 07 58
76 37anne@oxygen-rp.com |
|
Source: Boralex Inc.
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