Acquisition of FERSA
On October 7, 2015, the Company completed the acquisition of three Indian wind power plants, Bhakrani, Gadag and Hanumanhatti (the “FERSA Projects”), which represent 101.6 MW of aggregate net capacity, from Fersa Energias Renovables, S.A. (“FERSA”), a Spanish wind developer. The aggregate consideration paid for the FERSA Projects was $72.4 million, which includes the repayment of project level indebtedness of $39.0 million.
At the time of acquisition, the Company recorded this acquisition as ‘Equity method investment’. On January 1, 2016, as part of the adoption of ASU 2015-02, the Company consolidated the assets and liabilities of the FERSA Projects.
The net sales and net loss related to the foregoing acquisition are reflected in the accompanying consolidated statements of operations for the December 31, 2016 as shown below.
Unaudited Pro Forma Supplementary Data
The unaudited pro forma supplementary data presented in the table below gives effect to the acquisition as if the transactions occurred on January 1, 2015 and the plants were operational. The pro forma supplementary data is provided for informational purposes only and should not be construed to be indicative of the Company’s results of operations had the acquisitions been consummated on the date assumed or of its results of operations for any future date.
December 31, (Pro Forma)
The final fair value of assets and liabilities pertaining to the FERSA acquisition reflects the following changes from the initial opening balance sheet: a decrease of $11.9 million in power plants, an increase of $9.4 million in intangible assets, an increase of $40.6 million in accrued expenses and other liabilities, and a decrease of $4.6 million in long-term debt.
The acquisition date allocation of assets and liabilities for the above acquisition as of December 31, 2016 is as follows:
Cash and cash equivalents
Total assets acquired
Accrued expenses and other liabilities
Deferred tax liabilities
Total liabilities assumed
Fair value of net assets acquired