Cloudberry, a Sweden-listed renewable energy company, has announced its acquisition of a 50% stake in the MLK wind farm located in Finland. This strategic acquisition expands Cloudberry’s renewable energy footprint in multiple Nordic regions and technologies, complementing its existing portfolio. The acquisition takes the form of buying up shares in a Norwegian holding company, which holds the stake in the wind farm. This acquisition will become the platform for Cloudberry to capture growth potential in a rapidly expanding Finnish energy market.
The MLK wind farm generates about 378 gigawatt-hours (GWh) of electricity per year. Cloudberry will be receiving an expected 189 GWh net from its ownership share of the facility. The transaction greatly enhances Cloudberry’s opportunities for immediate cash flow. It further bolsters its long-term growth aspirations in a region where energy-intensive industries have sparked increased demand for electricity.
To address operational risk, the acquisition comes with a 30 year service agreement with General Electric (GE). This pact further seeks to protect the integrity of the wind farm’s management during its years of operation. Orrön Energy will continue to be the wind farm’s joint venture partner. Further into our collaborative management, this decision reinforces our more collaborative approach to managing the facility.
Cloudberry has worked out a robust financial plan for the acquisition. As part of their structured financing plan, they intend to raise around €45 million in debt from a Nordic bank. Cloudberry will pay the €20 million in instalments, issuing new shares priced at Nkr12.41 ($1.27) per share. In addition, they will contribute €12 million in cash from their own resources.
The agreement is scheduled to close within 30 days of execution. This milestone represents an important development for Cloudberry as it makes its maiden entry to the Finnish renewable energy market.
“This investment gives Cloudberry a strong foothold in a new core market, with immediate cash flow and a platform for further growth together with a solid partner.”
Lenborg elaborated on the strategic importance of this acquisition, saying,
“After several years of evaluating different entry options, we are now taking our first step into the Finnish market with a large-scale, high-quality operating wind farm. For Cloudberry, this represents a compelling combination of attractive valuation, a strong industrial partner and a high-quality asset with a proven production track record. The enterprise value is below construction cost, offering an attractive entry point that supports resilient returns.”
The deal is expected to finalize within one month of signing, marking an important milestone for Cloudberry as it ventures into the Finnish renewable energy landscape.