LGI acquires solar assets for $22 million
- LGI agreed to acquire 42 megawatts of operating solar assets in Queensland for $22 million without taking on debt.
- The company estimated the deal will generate annual earnings of $2.1 million to $4 million based on current electricity prices.
- The acquisition increases the company's targeted strategic pipeline to over 120 megawatts of capacity.
LGI (ASX:LGI) entered into a binding agreement to acquire 100% of two Queensland grid-connected solar farms for $22 million with no associated debt.
The purchase price remains below greenfield development costs for similar facilities, while both assets retain land leases exceeding 30 years.
LGI stated that adding battery energy storage system hybridisation could achieve further enhancements to earnings.
CEO Jarryd Doran stated, "The 42MW of solar across Chinchilla and Brigalow are proven, operational assets acquired well below replacement cost that complement our existing distributed grid connected footprint."
The business stated that the purchase will upgrade its targeted medium-term pipeline from 80 megawatts to over 120 megawatts of renewable capacity.
Following the announcement, the LGI share price was unchanged at $1.94.
LGI operates a portfolio of distributed renewable energy assets and carbon abatement facilities across Australia.
The company intends to maintain net debt below two times EBITDA while using its proprietary software to optimise power generation returns.
