Solar developer EEW to list via SPAC merger, gets USD-650m valuation

In order to secure a listing on the Nasdaq Stock Market, London-based solar project developer EEW Eco Energy World Plc has agreed to a business combination with a special purpose acquisition company (SPAC) that values its equity at USD 650 million (EUR 663.5m).

The agreement unveiled last week calls for both EEW and the SPAC, namely ClimateRock (NASDAQ:CLRC), to be acquired by a newly-formed entity currently known as Pubco. Upon completion of the transaction, the latter will become a publicly traded entity with a new company name.

Under the terms of the deal, EEW’s shareholders will get shares of Pubco in exchange for their own stock and are expected to hold between 80% and 85% of Pubco’s outstanding shares. The transaction needs to be accepted by them and approved by ClimateRock’s own shareholders.

EEW develops non-subsidised, utility-scale solar photovoltaic (PV) projects from a greenfield to a shovel-ready state. To date, the firm has developed projects with a capacity of about 1.5 GW for major institutional investors across Europe, the UK and Australia. It currently has assets under development in the UK, Spain, Sweden, Australia and Italy.

Svante Kumlin, founder and CEO of EEW, expects the company to sell an additional 2 GW over the next three years. “This transaction will allow us to expand our project development pipeline and enter new growth markets to enable EEW to benefit from the opportunity represented by forecast growth rates for solar power capacity expected to be up to 42% of the total energy market by 2050,” he commented. Kumlin will continue to lead the business following the merger.

(USD 1 = EUR 1.021)

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