Tidal energy developer Atlantis Resources Ltd. has reached an agreement to acquire the entire issued share capital of Marine Current Turbines Ltd. from Siemens AG in an all-share deal, pending certain conditions being met.
The deal would consolidate the companies under the Atlantis name and includes seabed rights, existing projects, staff and intellectual property.
Highlights of the acquisition include:
- A six-project portfolio with installations in Wales, Northern Ireland and southern England;
- Rights to MCT's 1.2 MW SeagGen S "surface piercing tidal system", and the 1 MW SeaGen U and 1 MW SeaGen F turbines.
- More than 15 years worth of research and development efforts;
- The potential for non-core project disposals and utilization of research and development and CAPEX grant income to enhance the group's balance sheet; and
- The establishment of a dedicated turbine assembly facility to be located at Global Energy's Nigg Energy Park in Ross-Shire, Scotland.
The deal gives Atlantis one of the largest portfolios of tidal power projects in the United Kingdom, for which Siemens will receive 9.99% of its enlarged issued share capital as sole consideration for the sale.
"We are delighted to be acquiring this leading British tidal power company from Siemens, which firmly positions Atlantis as a leader in U.K. tidal power and globally," Atlantis CEO Tim Cornelius said. "Marine Current Turbines has developed a world-leading tidal turbine, a world-class engineering team, unrivaled 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 U.K."
MCT's ongoing working capital will be financed by a loan package provided by Scottish energy services contractor Global Energy Group. Interest will accrue at a rate of 4.5% per annum, and will be rolled up and repayable in May 2018 at the same time as the principal amount.
"We are pleased that Atlantis, one of the strongest players in the comparatively new segment of tidal stream, has acquired Marine Current Turbines," said Achim Woerner, CEO of the Siemens Wind Power and Renewable Division's Hydro & Ocean Power branch. "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."
The company announced its plan to sell MCT this past November, citing slow development in the marine and hydrokinetics sector.
Marine Current Turbines announced in 2014 that it had signed an agreement with Bluewater Energy Services B.V. to develop a 2 MW turbine for installation in Canada's Bay of Fundy.
Meanwhile, Siemens opened a 25,000 square foot SeaGen manufacturing facility in April 2013 which was intended to produce units for use at the 10-MW Skerries array in Wales and 8-MW Kyle Rhea array in Scotland -- both of which were set for construction beginning this year.
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