SBI Offshore Limited said it has entered into an agreement to acquire a 51 per cent stake in the assets to be injected in its newly formed joint venture company, Graess Energy, for S$13.97 million.
The addendum was entered into between SBI and Graess Energy with GSS Renewables Private Limited (GSSR), a special purpose vehicle of Gräss Group.
Assets of the Gräss Group - namely Gräss Engineering GmbH, Gräss Operation Maintenance GmbH, as well as four existing solar photovoltaic power plants and systems in Bulgaria - will be injected into the JV.
For SBI to maintain its 51 per cent stake in Graess Energy, it agreed to first acquire 51 per cent ownership of the assets from Gräss Group before the assets are injected into Graess Energy.
The S$13.97 million consideration will be paid for by way of cash and new shares issued at a 15.72 per cent premium over the volume weighted average price for trades done on SBI shares on July 30.
"The proposed transactions will provide Graess Energy with the relevant track record, expertise and existing projects to kick-start its business in the solar energy sector," said SBI. "The four photovoltaic projects will also provide Graess Energy with a recurring income stream."