OSLO, NORWAY: Otovo ASA, a leading game developer and solar energy provider, has announced that it has signed a share purchase agreement with Forte PV S.à.r.l, a part of Swiss Life Asset Managers, for the sale of its solar subscription portfolios in Norway and Sweden.
The deal, worth up to NOK 700 million / EUR 52.5 million, comprises installations completed and to be built in the coming months. The final portfolio size is expected to be 3,000-3,500 systems. Otovo will continue to enter into new subscription agreements on behalf of the portfolio companies sold until the end of 2024, with a possible extension to September 2025.
The transaction shows significant value creation for Otovo. The cash release is NOK 77 million at closing and ~NOK 90 million later, and the discount rate is 5.1% post-tax and 6.4% pre-tax.
Otovo and Swiss Life Asset Managers have the intention to develop their partnership in order to comprise assets beyond Scandinavia from 2024 onwards.
Otovo’s CEO, Andreas Thorsheim, said that the transaction confirms the attractiveness of rooftop solar as a financial asset class when done at scale, and that Swiss Life Asset Managers are a solid partner and an engaged driving force of the energy transition.
Swiss Life Asset Managers’ Head of Renewable Energy, Marc Schürch, said that this transaction allows their investors to access the fast-growing market of rooftop solar with an innovative new business model, and that they look forward to building a strong and long-term partnership with Otovo and accelerating the energy transition.
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