Ferrostaal acquires stake in Solar Millnenium AG Project

DFN: Ferrostaal has a stake in Solar Millennium LLC.

Ferrostaal acquires 50% interest in Solar Millennium’s fourth Spanish project
http://social.csptoday.com/weekly-brief/weekly-intelligence-brief-august-23-august-30

Ferrostaal, a provider of industrial services in plant construction and engineering, has chosen to invest in German solar thermal power major Solar Millennium’s fourth Spanish project.

Solar Millennium has completed the sale of 50% of the stakes in the Ibersol power plant project to Ferrostaal.

Construction of the parabolic trough power plant with a capacity of 50 MW in the province of Extremadura is to commence in autumn 2010, while the plant is expected to be connected to the grid in spring 2013. The power plant is identical to Andasol 3, which is currently under construction in Andalusia.

Following its investment in the project, Ferrostaal will take part in the project development costs and help finance the power plant components that have already been ordered. All other measures in the run-up to the Ibersol construction will likewise be borne on a pro rata basis in the future.

Flagsol, the joint venture of Solar Millennium and Ferrostaal, will be largely responsible for engineering and construction.

At the same time, Solar Millennium has prepared the shareholder structure of the Ibersol project for the involvement of additional institutional investors. To this end, Solar Millennium repurchased 25% of the Ibersol project stakes from the holding company Cross Capital AG, Zug (Switzerland).

Cross Capital had acquired these stakes indirectly from Solar Millennium in October 2009. According to Cross Capital, this sale provides the holding company with liquidity to be able to invest into planned solar-thermal power plants in the US.

The sale of stakes to Ferrostaal is still subject to approval by German antitrust authorities (Bundeskartellamt). In addition, the transfer of stakes in the Ibersol project company to a German holding company must be made legally effective according to Spanish law. Both of these procedures should be completed in the near future.

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