Sognekraft Produksjon to acquire the remaining 50% stake in Leikanger hydropower plant from Orrön Energy for €53m.

Sognekraft Produksjon, a hydroelectric power company, agreed to acquire the remaining 50% stake in Leikanger hydropower plant,a 77MW hydro power project, from Orrön Energy, a renewable energy company, for €53m. “This transaction is a perfect example of our opportunistic and entrepreneurial approach to value creation, and the sales price clearly demonstrates the underlying value of our assets and the discount in our share price. The Leikanger asset represents less than 10% of Orrön Energy’s annual power generation, however the value of this transaction represents approximately 20% of our enterprise value and 30% of our current market capitalisation. From inception we have been focused on project returns and this transaction allows us to recycle capital into projects and acquisitions with higher rates of return,” Daniel Fitzgerald, Orrön Energy CEO.