January 9 (SeeNews) - Bulgarian Rodina Capital [BUL:RDNA] will build a 2 MW photovoltaic power plant after a planned investment by its largest shareholder, DNS Invest, Rodina Capital said.
DNS expects that 2.5 million levs ($1.36 million/1.28 million euro) will be injected in the solar project in 2023, Rodina Capital said in a bourse filing on Friday.
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DNS, which owns 70.15% in Rodina Capital, is proposing 7.65 levs per share as part of a revised offer to acquire the remaining 29.85% it does not hold.
The solar project is part of DNS’s strategy plan for Rodina Capital’s activity after the potential deal. The initial 2.5 million investment has been secured via a bank loan. In addition, the project is expected to require additional annual investments of 300,000 levs in 2024, 2025, 2026 and 2027 each.
The construction of the photovoltaic station is expected to begin in 2023. The plant is scheduled to become operational at 75% of its capacity in 2024. It should reach full capacity in 2027.
As part of DNS’s plan, Rodina Capital will restart production of furniture and will initiate the manufacture of pallets. The projects should be financed with own funding.
If the own financing is not sufficient, Rodina Capital could conduct a capital increase or may receive a loan from DNS. A bank loan or issuing of bonds are also possible.
Rodina Capital first said it received a revised offer from Rodina Capital on December 29. Bulgaria’s Financial Supervision Commission earlier in December banned the investor’s original proposal, requiring a price recalculation.
According to Rodina Capital’s board of directors, the revised offer is fair and complies with the regulatory requirements, the company said in its latest statement.
(1 euro = 1.95583 levs)