NextEnergy Solar Fund Limited Related Party Transaction with WiseEnergy (4321G)
30 Mai 2017 - 8:01AM
UK Regulatory
TIDMNESF
RNS Number : 4321G
NextEnergy Solar Fund Limited
30 May 2017
30 May 2017
NextEnergy Solar Fund Limited ("NESF", or the "Company")
Related Party Transaction with WiseEnergy for the provision of
accounting services
The Board of NESF is pleased to announce the signing of an
accounting services agreement (the "Agreement") with WiseEnergy
(Great Britain) Limited ("WiseEnergy") for the provision of
accounting, bookkeeping and back office services in respect of the
Company's solar assets. The Agreement is for a minimum period of 5
years. The Agreement will come into effect on or around 1 June
2017, including a transition period with the existing third party
provider, who has been providing accounting, bookkeeping and back
office services to the Company since July 2015.
Following a review by the Board of a number of third party
providers of such services, the Board concluded that WiseEnergy
would be able to provide the most extensive scope of services, with
a dedicated team and tailored service, for a company owning solar
assets and on a more efficient and cost effective basis than the
current third party provider. The extensive scope of the WiseEnergy
proposition is expected to provide an end-to-end and predictable
solution for the Company in relation to its solar assets and at a
cost approximately 20% below the current cost. Furthermore, the
Company expects to benefit from relevant members of the WiseEnergy
team being based in the UK.
Based on the size of the existing portfolio and the pipeline of
acquisitions currently in execution and inclusive of any setup
costs for new SPVs, the costs for the Company are expected to be
approximately GBP650,000 in the first year and GBP600,000 per
annum, with any increase in cost linked to RPI, over the subsequent
4 years, based on the current number of the Company's
subsidiaries.
WiseEnergy, which provides solar asset management, monitoring
and other services to the Company, is under the common control of
the wider NEC Group along with NextEnergy Capital Limited
(Investment Adviser to NESF), NextEnergy Capital IM Limited
(Investment Manager to NESF) and NextPower Development Limited
(which was appointed as Developer by NESF at the time of the
Company's IPO in April 2014) and as such is a related party of the
Company. Based on the amounts involved, the transaction constitutes
a smaller related party transaction as set out in Listing Rule
11.1.10R.
The Board believes that the agreement will be beneficial to
shareholders for the following reasons:
-- Cost and transparency: a reduced and more transparent cost base for the Company.
-- Control and oversight: increased control over the accounting,
book keeping and back office function due to WiseEnergy's UK
location, together with a dedicated team focused on solar
assets.
-- Accountability: increased responsibility to ensure delivery
of accurate information in a timely manner.
Kevin Lyon, Chairman commented:
"The Board believes that there is a strong commercial and
operating rationale for the decision. We have conducted an
extensive market research process, and the WiseEnergy proposal
ensures significant cost savings compared to the current provider
and provides the Company with a complete suite of services. The
WiseEnergy team brings with it a wealth of experience in relation
to solar assets and we are confident that this will result in
increased efficiencies, bringing additional predictability and
transparency to the cost base over the length of the contract
together with a more dedicated level of service for the
Company."
For further information:
NextEnergy Capital Limited 020 3239 9054
Michael Bonte-Friedheim
Aldo Beolchini
Cantor Fitzgerald Europe 020 7894 7667
Sue Inglis
Fidante Capital 020 7832 0900
Robert Peel
Justin Zawoda-Martin
Shore Capital 020 7408 4090
Bidhi Bhoma
Anita Ghanekar
Macquarie Capital (Europe)
Limited 020 3037 2000
Nick Stamp
MHP Communications 020 3128 8100
Andrew Leach / Jamie
Ricketts
Notes to Editors:
NextEnergy Solar Fund (NESF)
NESF is a specialist investment company that invests in
operating solar power plants in the UK. Its objective is to secure
attractive shareholder returns through RPI-linked dividends and
long-term capital growth. The Company achieves this by acquiring
solar power plants on agricultural, industrial and commercial
sites.
NESF has raised equity proceeds of GBP465m since its initial
public offering on the main market of the London Stock Exchange in
April 2014. It also has credit facilities of GBP270.2m in place
(GBP150m from a syndicate including MIDIS, NAB and CBA; MIDIS:
GBP54.7m; Bayerische Landesbank: GBP43.8m; and NIBC: GBP21.7m).
NESF is differentiated by its access to NextEnergy Capital Group
(NEC Group), its Investment Manager, which has a strong track
record in sourcing, acquiring and managing operating solar assets.
WiseEnergy is NEC Group's specialist operating asset management
division, providing solar asset management, monitoring and other
services to over 1,250 utility-scale solar power plants with an
installed capacity in excess of 1.7 GW.
Further information on NESF, NEC Group and WiseEnergy is
available at www.nextenergysolarfund.com, www.nextenergycapital.com
and www.wise-energy.eu.
This information is provided by RNS
The company news service from the London Stock Exchange
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