Atlantis Resources has reached an agreement to acquire the entire issued share capital of the Bristol-based tidal business, Marine Current Turbines Limited, (“MCT”) from Siemens AG in an all share deal.
The acquisition is conditional upon certain conditions precedent being satisfied.
Siemens will receive 9.99% of the Company’s enlarged issued share capital as sole consideration for the sale.
With the acquisition, Atlantis will get MCT 1.2MW surface piercing tidal SeaGen system (“SeaGen S”). The acquisition will also include MCT’s tidal turbine intellectual property portfolio and the designs for MCT’s turbines, including 1 MW fully submerged SeaGen turbine (“SeaGen U”) and its 1MW SeaGen system designed for floating deployment applications (“SeaGen F”).
The company’s dedicated turbine assembly facility will be located at Global Energy’s Nigg Energy Park in Ross-Shire, Scotland.
Global Energy Group provided a loan package to finance ongoing working capital of MCT. Interest on the loan will accrue at the rate of 4.5% per annum and be rolled up and repayable in May 2018 at the same time as the principal amount.
Tim Cornelius, CEO of Atlantis, commented:
“We are delighted to be acquiring this leading British tidal power company from Siemens which firmly positions Atlantis as a leader in UK tidal power and globally. Marine Current Turbines has developed a world leading tidal turbine, a world class engineering team, unrivalled expertise in long-term turbine operations and testing through its SeaGen installation at Strangford Lough and an impressive portfolio of projects under development across the UK.
“We welcome Siemens as an Atlantis shareholder. This deal sees two industry leaders, MCT and Atlantis, combining to underpin the UK’s position as one of Europe’s tidal power leaders.”
Achim Woerner, CEO Hydro & Ocean Power at Siemens Wind Power and Renewables Division, commented:
“We are pleased that Atlantis, one of the strongest players in the comparatively new segment of tidal stream, has acquired Marine Current Turbines. This will enable the areas of competence of Marine Current Turbines, in particular its engineering capabilities, to be retained. Siemens will continue to cooperate with respect to component supply with MCT / Atlantis in the future.”
Gordon Ronaldson, Executive Vice President of Global Energy Group’s Process & Equipment business, commented:
“We are delighted to have played a role in assisting in the consolidation of the tidal power market in the United Kingdom. There is a real opportunity through this acquisition to establish Scotland as the centre of excellence for the sector, in terms of IP ownership, project development and manufacturing. This is an important and exciting milestone in establishing Nigg as Scotland’s main construction and logistics base for offshore renewables. We look forward to welcoming the enlarged Atlantis group to Nigg Energy Park and to supporting their various projects in Scotland and throughout the UK.”