solarhybrid AG announces the delay of its acquisition of US solar power projects with a capacity of 2.25 GWp from the Solar Millennium Group from 2011 to the first quarter of 2012. Furthermore, the acquisition will be implemented for approx. 1.75 GWp only.
Having finalized the due diligence examination, both parties had signed definitive agreements on December 1, 2011. The closing of these agreements and further payments depend on a number of conditions, in particular the approval of the agreements by the two companies’ Boards and by a minority shareholder in a Solar Millennium Group company in the USA. The solarhybrid Board has now approved the agreements under certain conditions, namely the further clarification of the applicability of the project rights to photovoltaic instead of solar thermal technology, which is expected to be concluded in January 2012 at the earliest.
The agreements stipulate that upon closing a loan already granted to Solar Millennium AG is converted into a transaction payment and that further substantial payments are due at that time. In addition Earn Out payments become due essentially upon grid connection of the power plants, which is not expected to occur before 2016.