Cloudberry to acquire 50% stake in onshore wind farm in Finland

Core Insights - Cloudberry Clean Energy has signed an agreement to acquire a 50% stake in a 132MW onshore wind farm in Finland for an enterprise value of €75 million ($85 million) on a cash and debt-free basis [1] - The wind farm has been operational since 2022 and produces an estimated 378 gigawatt-hours (GWh) annually, with Cloudberry expecting to receive approximately 189 GWh net from its share [1] Acquisition Structure - The acquisition is structured as a purchase of shares in a Norwegian holding company that owns the portion of the MLK wind farm [2] - Financing includes €45 million in debt from a Nordic bank, €20 million through new Cloudberry shares at Nkr12.41 ($1.27) per share, and €12 million in cash from the company's resources [2] Strategic Importance - Cloudberry's CEO stated that this investment provides a strong foothold in a new core market, with immediate cash flow and a platform for further growth alongside a solid partner [3] - The transaction includes a 30-year service agreement with GE to manage operational risks long-term, and there may be future installations of battery energy storage systems [3] Market Expansion - Cloudberry aims to expand its renewable portfolio across Nordic regions and gain access to the Finnish energy market, which is experiencing increased electricity demand from energy-intensive industries [4] - The CEO emphasized that this marks the company's first step into the Finnish market with a large-scale, high-quality operating wind farm after evaluating various entry options [4] Valuation and Closing - The acquisition is viewed as a compelling combination of attractive valuation, a strong industrial partner, and a high-quality asset with a proven production track record, with the enterprise value below construction cost [5] - The deal is subject to customary closing conditions and is expected to finalize within one month of signing [5]