Soul Partners acted as exclusive financial advisor to RP Global for entering Ukrainian renewable energy market
RP Global attracted Soul Partners as an exclusive buy-side advisor in Ukraine to search for potential acquisition of ready to build wind and solar energy project or for a local development partners.
RP Global planned development or purchase of 500MW wind energy portfolio in Ukraine.
The first stage of Soul Partners' work was comprehensive market research, as a result of which a list of more than 60 potential targets in the Carpathian Mountains, Black and Azov Seas was presented to RP Global. After more than 30 interviews with business owners, four memorandums of understanding were signed between potential partners and RP Global. Finally, the process of a joint venture establishment was started with one of the potential partners - the Ukrainian developer of wind energy projects.
However, due to changes in Ukrainian legislation in the field of renewable energy in 2019, the economic substance of the investment was lost, which forced RP Global to abandon its entry into the Ukrainian market.
Vitaly Provotorov, Managing Partner of Soul Partners: “The development of renewable energy was actively supported by the favourable legislation called "green tariff", which guarantees 100% offtake of all electricity produced from renewable sources at a fixed tarrif linked to the Euro. Such attractive conditions of state support combined with a significant drop in prices for the wind and solar equipment during 2017-2019 contributed to the increased interest of foreign and local investors in green energy in Ukraine, including our client RP Global. At the time of the decision making by the shareholder and top management of RP Global, the regulatory situation in Ukraine has changed dramatically making potential investments for our client unattractive. We strongly supported the final decision of our client to postpone/cancel the process of entering into Ukraine”.
Background information
Soul Partners is an investment banking boutique that provides professional financial consultations to the businesses and to investors. We are specialized in investments attraction, support of M&A and equity-rising transactions and debt restructuring services.
RP Global: Austrian private company founded in 1986, a developer, operator and investor in the field of renewable energy with a focus on wind, hydro and solar energy. It has its operations on three continents: Europe, Africa and South America.