Solar Millennium to reap maximum benefits from Andasol 1 and 2 companies
Solar Millennium AG has strengthened its holdings in the Andasol 1 and 2 power plant companies.
The company shared that it now has the sole control of Solar Millennium Verwaltungs GmbH and therefore will be able to benefit from the entire profits and increasing values of Andasol 1 and 2 held by the holding company.
"Solar Millennium AG has rescinded the former dominating influence exercised by a private investor group in its subsidiary and holding company Solar Millennium Verwaltungs GmbH," stated the company. Further details weren't shared.
Thomas Mayer, Solar Millennium's Chief Financial Officer said the company considers there is substantial value potential in the Andasol 1 and Andasol 2 holdings.
"The shares will see a significant increase in value as soon as the solar thermal power plants are put into operation. After commissioning, we will decide either to sell our shares, or to retain them on a long-term basis," said Mayer.
Solar Millennium Verwaltungs GmbH holds a 25 percent stake in the Andasol 1 and 2 projects. These are the first two parabolic trough power plants in Europe. Developed by Solar Millennium, they are being built in Andalusia in southern Spain. Solar Millennium sold the remaining 75 percent in these two projects to the Spanish ACS/Cobra Group prior to realisation. Andasol 1 will go into operation in late summer 2008, followed by Andasol 2 in spring 2009.
In the 2004-05 and 2006-07 fiscal years, Solar Millennium had assigned the 25 percent holding in the Andasol 1 and Andasol 2 projects to their wholly owned subsidiary Solar Millennium Verwaltungs GmbH, in which a private investor group had a dominating influence as a dormant partner. For this reason, Solar Millennium Verwaltungs GmbH was not consolidated in the Solar Millennium AG latter financial statements.
With the revocation of the controlling influence Solar Millennium Verwaltungs GmbH will be fully integrated and consolidated in the Solar Millennium financial statements, resulting in an increase in assets.
In April this year, Solar Millennium AG had broadened its technological portfolio to make solar thermal power plants in hybrid operation, work round the clock.