CBD Energy Acquires Equity Interest In Environmental Engineering Group; Secures Additional 100MW Pipeline
CBD Energy Limited (NASDAQ: CBDE), a diversified clean energy company and leading global provider of solar systems, has entered into an agreement with Environmental Engineering Group Thailand (EEG) to acquire 30 percent of the company.
As part of the transaction CBD intends to grant EEG a sub-license to utilize the Westinghouse Solar brand in Thailand. The company has developed a unique market position with an attractive model for commercial solar rooftops which is supported by a partnering agreement with the Government owned Provincial Electricity Authority’s renewable energy subsidiary PEA ENCOM.
This transaction will ensure that CBDE participates in EEG’s extensive project pipeline of over 100 megawatts with the potential for significant and rapid growth. This pipeline is in addition to an agreement, announced August 1, with Environmental Engineering Group Thailand (EEG) to participate in the construction of 64MW of solar projects with a projected development cost of approximately $112 million. The projects are supported by 25-year power purchase agreements.
CBDE acquired the exclusive worldwide license to market its residential and commercial solar under the Westinghouse Solar name. The company believes the branding value of the Westinghouse name, backed by its 20 year warranty on systems the company installs, may enable it to rapidly develop new markets and new customers. As part of the transaction between the two companies, CBDE intends to grant EEG a sub-license to trade under the Westinghouse Solar brand.
CBD Energy Executive Chairman Gerry McGowan said that geographic diversification is one of CBDE’s core strategies for achieving growth and predictable cash flows. “We feel Thailand represents an incredible opportunity to capitalize on a rapidly developing market with growing power needs, and blends well with projects we have under development in North America, Europe, UK and Australia.”
About CBD Energy Limited (NASDAQ: CBDE)
Established in 1989, CBD Energy Limited is a diversified renewable energy company and a global leader in solar installations. Powered by a management team with deep experience in the energy sector and strong engineering capabilities, CBDE is focused on the integration of residential solar, commercial and industrial solar, small utility scale solar and wind projects, in three principal markets - Australia, the United Kingdom and the United States. CBDE markets its residential and commercial solar installations under the name Westinghouse Solar, using the WESTINGHOUSE® trademark pursuant to an exclusive, long-term worldwide license.
Headquartered in Sydney, with principal regional offices in London and New York, CBDE has completed projects across four continents in Australia, Fiji, Germany, Italy, New Zealand, Thailand, the United Kingdom and the United States, CBDE has installed more than 17,000 residential systems and developed large renewable energy projects such as the 107MW wind farm in Taralga, NSW. For further information on CBD Energy Limited and Westinghouse Solar, please visit:
Caution Concerning Forward-Looking Statements
This news release contains ‘forward-looking statements. Such forward-looking statements can be identified by, amongst other things, the use of forward-looking language, such as the words ‘plan’, ‘believe’, ‘expect’, ‘anticipate’, ‘intend’, ‘estimate’, ‘project’, ‘may’, ‘would’, ‘could’, ‘should’, ‘seeks’, or ‘scheduled to’, or other similar words, or the negative of these terms, or other variations of these terms or comparable language, or by discussion of strategy or intentions.
The forward-looking statements in this release include statements regarding the implied value of the acquisition agreement with Environmental Engineering Group Thailand and the estimated value of EEG’s current and future project pipelines. Such forward-looking statements are subject to various risks, as well as those set forth in the Corporation’s most recent Form F-1, as filed with the U.S. Securities and Exchange Commission (SEC), and involve assumptions, estimates, and uncertainties that reflect current internal projections, expectations or beliefs. There can be no assurance that such statements will prove to be accurate, and actual results and future events could differ materially from those anticipated in such statements. All forward-looking statements contained in this news release are qualified in their entirety by these cautionary statements and the risk factors described above. Furthermore, all such statements are made as of the date of this release, and CBD Energy Limited assumes no obligation to update or revise these statements unless otherwise required by law.
Copyright Business Wire 2014