Solar Millennium AG has reached an agreement regarding the sale of shares in the Andasol power plants to a solar fund.

"The transaction is subject to board approvals and is therefore currently conditional. It has been agreed not to disclose details prior to the approval of the governing bodies," stated the company. "When added to the results of the project development, technology and plant construction business sectors, this sale secures the envisaged net profit of Solar Millennium for the current fiscal year of €18 million."

According to Solar Millennium, with the fund concept, it has chosen an instrument which goes beyond the classic ways of financing.

Such initiative gives the Group "the necessary flexibility and extended room for manoeuvre against the background of the profound financial market crisis".

On the solar fund, the company also said that it represents an advantage for both the development of solar-thermal power plants and the long-term investors seeking a solid investing opportunity.

Christian Beltle, CEO, Solar Millennium AG, said: "By this innovative concept we have adapted to the modified financial market conditions within a short period of time. With a view to our well equipped project pipeline, the financing via funds also provides an excellent alternative for our future projects."