Solar energy firm Sunergy Renewables trims SPAC deal value

Zeo Energy

25/01/2024 15:53

Jan 25 (Reuters) - Solar energy company Sunergy
Renewables and blank-check firm Esgen Acquisition Corp  ESAC.O 
cut the valuation of the combined entity to $390 million on
Thursday after they amended the terms of their planned merger.
    The companies had originally agreed on a $475 million
valuation in April last year to list Sunergy on Nasdaq via the
merger deal.
    Esgen's backer, Energy Spectrum, has agreed to provide
additional support to the deal in which the company would buy up
to $15 million in convertible preferred equity securities, it
said on Thursday.
    Earlier, the energy infrastructure investment firm had
agreed to invest $10 million. The firm had $1.85 billion of
assets under management as of Sept. 30.
    Florida-based Sunergy was founded in 2005 and provides solar
and battery-based power as well as storage systems for
residential use in Florida, Texas and Arkansas.   
    Blank-check firms, also known as special-purpose acquisition
companies, have fallen out of favor due to an elevated interest
rate environment and heightened regulatory scrutiny.    

 (Reporting by Jaiveer Singh Shekhawat in Bengaluru; Editing by
Vijay Kishore)
 ((JaiveerSingh.Shekhawat@thomsonreuters.com;))