The state-owned energy group Lietuvos Energija has acquired two wind farms in Lithuania and Estonia, adding 42.3MW to its energy production capacity.
© DELFI / Valdas Kopūstas

"One of the strategic directions of Lietuvos Energija is the growth and diversification of power generation. Naturally, based on the current environment and future prospects, we chose wind energy as one of the development directions," said Dalius Misiūnas, Lietuvos Energija CEO.

He added that the deal was the company's first investment in wind power and the first purchase outside Lithuania.

"We see Baltic and Nordic energy market as one, and so we will continue expansion in the region," Misiūnas said.

Wind power capacity managed by Lietuvos Energija, will produce 136,000 megawatt-hours of electricity per year, equivalent to annual electricity consumption of Klaipėda, Lithuania's third biggest city.

The acquired Lithuanian company Eurakras operates eight 3MW wind turbines in Jurbarkas district.

The other acquisition, Tuulueenergia, operates six wind power plants, 18.3MW capacity in total, in Estonia.

"The total price of the two transactions is €28 million, adjusted for the financial indebtedness of the companies, the enterprise value and EBITDA (EV/EBITDA) multiple ranges between 9 and 10 times.

"The transactions were mostly financed with borrowed funds, taking advantage of the beneficial borrowing terms and the sustainable balance sheet of Lietuvos Energija. Only one tenth of the deal was funded from the company's own resources. This will increase the investment's equity return which is expected to exceed the 9 percent provided for in the strategy of Lietuvos Energija," says Darius Kasauskas, the director of Finance and Treasury of Lietuvos Energija.

It is forbidden to copy the text of this publication without a written permission from ELTA.

Hot weather has brought harvest time earlier

Hot weather during this summer has brought harvest time earlier in Lithuania as the winter barley...

Renovated Palanga Airport will open next year

Next year, Palanga Airport will make travellers welcome in its renovated premises, announced...

Only Bulgaria has higher income inequality than Lithuania

The way income and wealth are distributed across society determines the extent to which individuals...

Medical imaging company raises $1.7M seed round to bring AI into clinical radiology practice

Oxipit , the authors of ChestEye AI-powered radiology software suite is announcing today the close of...

Startup providing product reviews plans further expansion in Lithuania

Bazaarvoice who first established a branch in Vilnius a year ago plans to implement further...