Oslo, Norway, 20th March 2020: MAGNORA ASA, a leading Norwegian royalty and license revenue company is pleased to announce that final transaction agreements for the 500 MW shallow water offshore project as first announced on 13 March 2020 have been signed. The co-operation with the founders and the development of the project will thus now commence with Magnora obtaining an initial minority ownership stake of up to 5% in exchange for funding of a 12-month feasibility study period ending no later than April 2021. Magnora then has the option to acquire up to 50% of the company through a detailed milestone plan.
The team of project company founders has a 25-year track record of successful development of more than 3.000 MW wind power projects in several countries across the world both onshore as well as offshore. The team´s experience covers all aspects of a green field project development and commissioning work. Together with the highly experienced Magnora team, the project has a very strong development platform.
Magnora’s Head of Business Development Theis Hanang Pedersen said: “Magnora gains access to an independent development company with three serial entrepreneurs that marks our second building block in our co-development strategy for a large wind portfolio in the Northern European region.”
The planned project is estimated to produce more than 2 TWh per year delivering power to approximately 250,000 households, in a region with high demand and low supply of green electricity. At the same time, it will contribute to a substantial reduction of emissions of carbon dioxide, by replacing coal and gas fueled power production in the inter-connected European grid. Based on results from several studies, the reduction can be estimated to between 1 and 1.4 million tons per year.
Magnora’s Senior Advisor Haakon Alfstad said: “The project is close to relevant infrastructure, and wind conditions are excellent. The project is also located in an area with very attractive electricity prices and will make a significant contribution to reducing both climate impact and health hazards related to fossil fuels.“
Magnora’s Senior Advisor Haakon Alfstad will take the position as Executive Chairman in the new portfolio company.
The potential investment in the 500 MW offshore project will not influence Magnora’s dividend strategy/policy, and the potential commitments are fully financed. The maximum, total investment by Magnora in the feasibility period is approximately NOK 1,500,000, with a first tranche of approximately NOK 500,000 which will be paid upon commencement.
Magnora is also pleased to inform of immediate progress with the Vindr team. The Vindr team has a very compelling approach addressing market opportunities using modern technology in an advanced way in order to identify good sites and projects.
The team is in good discussions with several landowners for project-identification
Advokatfirmaet Schjødt AS has advised Magnora on both transactions.
Magnora will continue to invest in teams and projects that increase our ability to build a diversified asset light green investment portfolio.
The Company’s “deal-flow” is growing and continues to develop its exposure to and contact with competent entrepreneurs, industrial players, green companies and landowners.
More about Magnora’s renewable strategy: https://newsweb.oslobors.no/message/497520
About Magnora (OSE: MGN): Magnora ASA is a royalty and license company looking for profitable investment opportunities. The company is listed on the main list on Oslo Stock Exchange under the ticker MGN.
For further information, please contact Erik Sneve, CEO, Magnora ASA email@example.com.
This information is subject to the disclosure requirements pursuant to section 5-12 of the Norwegian Securities Trading Act.