Atlantis has agreed to sell a minority stake in its Scottish tidal development company, Tidal Power Scotland Limited (TPSL) to DEME for cash consideration, subject to satisfaction of certain conditions precedent which are scheduled to be achieved during the coming weeks.
Reportedly, DEME has agreed to pay Atlantis £2 million in cash consideration for a 2 per cent stake in TPSL and a right to contribute equity funding to the Sound of Islay project. As part of the transaction, Atlantis and the DEME are said to intend to develop a partnership for offshore construction works to draw on DEME’s experience and expertise in the offshore renewables sector for the benefit of the Atlantis’ Scottish portfolio build out.
This follows TPSL’s agreement with ScottishPower Renewables in December 2015 to acquire the 10MW Sound of Islay project and 100MW Ness of Duncansby project in exchange for a 6% shareholding in TPSL. Following the completion of the DEME and SPR transactions, Atlantis will retain a 92% stake in TPSL.
The DEME group has a fleet of over 90 major construction vessels and the group’s turnover in 2015 was €2.35 billion. GeoSea NV, as DEME’s specialist offshore construction arm, has over 35 years of experience in complex offshore construction projects. The DEME group is an existing investor in marine energy projects through DEME Blue Energy NV, a partnership between DEME and PMV (ParticipatieMaatshappij Vlaanderen).
Tim Cornelius, CEO of Atlantis, said: “We are excited to welcome DEME as a strategic investor into the TPSL portfolio. As a respected global leader in offshore renewable energy installation, DEME brings a wealth of expertise and we are particularly excited to work closely with them to help deliver our Scottish project pipeline.”
Alain Bernard, CEO of DEME group, commented: “This transaction is a vital move for the DEME group in fulfilling its ambitions to be at the forefront of the growing tidal energy industry. Moreover, it consolidates the company’s presence in the UK as DEME’s involvement in the UK offshore business dates back to the early years of offshore wind. We look forward to working alongside Atlantis and SPR as shareholders in TPSL to develop and construct this unrivalled portfolio of projects.”