BP buys remaining 50.3% stake in solar developer Lightsource for GBP 254M

BP has agreed to acquire the 50.03% interest it does not already own in Lightsource bp, one of the world’s leading developers and operator of utility-scale solar and battery storage assets.The parties agree that now is the right time for bp to take full ownership, enabling Lightsource bp’s continuing growth and high performance…Full ownership will now enable bp to further scale up Lightsource bp and create additional value by applying bp’s complementary capabilities and strengths – including in finance and trading bp has structured and priced the acquisition terms to be highly competitive, reflecting market conditions and with a consideration structure that is biased to performance. In time, bp may also look to unlock further value through bringing a strategic partner into the business. – fully to the business. bp will continue to target double digit equity returns from this business. Under their agreement, bp will acquire the remaining stake in Lightsource bp from the company’s founders, management, and staff. The parties have agreed a base equity value of GBP 254M for the 50.03% interest. The selling shareholders will also have the opportunity to receive further payment over time, dependent on company performance and the market value of pre-agreed assets divested from the portfolio. For full year 2022, Lightsource bp reported underlying EBITDA of GBP 287M and at the effective transaction date, 31 December 2022, had corporate level debt adjusted for cash of GBP 1.5 B excluding project finance.