Next leap forward

We want to expand our business model and see clearvise AG as the right partner to join forces.

In contrast to a takeover, this transaction will yield two strong companies with different business models. None of the companies nor the energy transition would profit from a takeover that would paralyze both companies for a prolonged period of time. The target is to expand our business model and, together with clearvise AG, to create the second largest listed independent power producer.

We are combining the stable core of our business model – through our stake in clearvise AG – with exciting green technologies ready to scale such as battery storage systems and efficient capital solutions with which we want to channel more institutional capital into the energy transition. Herewith, we add investments to the conservative business model of the operation of solar and wind parks that either generate more return through a different risk-return profile (e.g. battery storage plants) or generate a higher return on equity through a so-called “fee component” (e.g. co-investments) in combination with less balance sheet equity.

It is an expansion of our business model. For us, it’s the next logical leap forward to evolve from a renewables native into the energy transition investment company of tomorrow.

We will keep our stakeholders transparently informed as always. The essential next steps have already been outlined in the context of the transaction. There will be no surprises.

We are evolving. Therefore, our brand, what we stand for, must also evolve.

Subject to the conclusion of a binding agreement, further market trends and the approval of their relevant committees (including the general meetings of both companies), the parties to the MoU in a second step seek to contribute the Company’s existing European wind and solar portfolio, not however the Company’s pipeline, to clearvise AG in exchange for new clearvise AG shares to be created and a cash component to be paid to the Company. The parties expect that such a contribution would increase the Company’s ownership interest in clearvise AG to approximately 40%. The second step is not intended to result in the acquisition of a majority share in clearvise AG, nor is it intended to change the existing open market listing of clearvise AG. However, the MoU provides for appropriate representation of the Company in the Supervisory Board of clearvise AG.

The stake acquired in clearvise AG was supported by Arvantis Group’s renewable energy subsidiary Pelion Green Future. Jeremias Heinrich, Founder and Managing Director of the Arvantis Group: “We are committed to continuously support Pacifico Renewables to build a leading energy transition company. This step represents the beginning of a transition towards a broader business model, which is perfectly suited to benefit from a wide range of opportunities provided by the ongoing green energy revolution. Therefore, the exchange ratio of this transaction was only a secondary aspect for us.”

Together with clearvise AG, we are aiming to realize the second step by the end of the year.

We have a common understanding with the management of clearvise AG as to how the second step is to be implemented and have all the important milestones well in sight. There are always the so-called “unknown unknowns” in such large transactions, but we will also get to grips with these together.

The overall transaction makes so much sense for both companies that failure is not part of our mutual agenda. Separate from this, the first step in isolation already creates value for our shareholders.

That’s exactly what we are doing. We are a young, dynamic and agile company with the goal of accelerating the energy transition. We have built a profitable wind and solar farm portfolio in record time and demonstrated that we can channel equity and debt capital into the energy transition. That’s exactly what we’re continuing to do, and we’re looking forward to it.

We already did so in past capital increases and just recently with UBS Asset Management for our first green loan. Our growth and our ability to structure complex transactions speak for ourselves.

Building our pipeline is undoubtedly one of our greatest successes in the past few years. In fact, it got “too big” to realize the full potential of this pipeline ourselves. That’s why we want to open up the pipeline to others such as clearvise AG and institutional investors.

We are convinced that battery storage systems will play a central role in the success of the entire energy transition. With the increasing expansion of renewable energies, our power grids are becoming more and more strained, as grid expansion is not progressing fast enough. Due to their flexibility, batteries can help here to cushion grid overloads and minimize fluctuations.

We apply sustainability criteria to everything we do.

The energy transition is full of exciting topics. Community solar is an exciting development with regard to decentralization, hydrogen is a topic that everyone is talking about, but it remains to be seen which topic will prevail.