Acquisition of a wind farm
With reference to current report No 77/2021 and No 89/2021, the Management Board of Budimex SA (“Budimex”) announces that on 22 February 2022 it entered into an agreement with FIGENE CAPITAL S.A. with its registered office in Warsaw (“FIGENE”) for the purchase of 100% of shares in the special purpose vehicle Magnolia Energy sp. z o.o. with its registered office in Warsaw (“SPV”), implementing a project involving the construction of a wind farm with a capacity of up to 7MW (“Project”).
The project involves the construction of a wind farm consisting of 2 wind turbines with a total capacity of up to 7 MW in Drachowo, Wielkopolskie province. The wind conditions in the region allow us to estimate that the annual production of the farm will exceed 25 GWh. The Project has a set of administrative and legal permits allowing the commencement of construction works and the connection of the Project to the network. In 2021, SPV entered into a contract for the supply of turbines, which are to be delivered by the end of 2022. SPV has also concluded an agreement for long-term sale of electricity generated by the Project.
The purchase price for the SPV shares has been set at PLN 22 million and will be paid in accordance with the schedule and rules set out in the purchase agreement. The final settlement of the price will depend on the actual levels of electricity produced and sold by SPV and the settlement of SPV’s net debt.
Today, Budimex has paid the relevant part of the price for the shares in accordance with the concluded agreement and has taken control over SPV.
Thus, Budimex has started operations in the segment of electricity generation from renewable energy sources in high-capacity projects.
Budimex considers this information to be confidential since the implementation of the contemplated acquisition of the Project constitutes an entry into a new area of the core business, despite the fact that the estimated value of the transaction does not exceed the thresholds specified in the Individual Reporting Standard of Budimex S.A. for the acquisition of assets of significant value and for the conclusion of a significant agreement.