The FTSE 100-listed BP PLC (GB:BP) secured full ownership of its solar JV, Lighthouse BP, with the acquisition of the remaining 50% stake. As part of the agreement, BP is set to purchase the additional stake from the founders, management, and staff of Lightsource BP for £254 million. The selling shareholders will also have the chance to receive additional payments over time, contingent on the company’s performance.
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The anticipated completion date for the deal is in the middle of 2024.
This acquisition aligns with BP’s strategic initiative to enhance its renewable energy capacity and the broader energy transition strategy. It will serve as a foundation for the company’s strategic expansion in low-carbon and biofuel production, along with the advancement of EV charging initiatives. The acquired unit will be responsible for constructing solar plants to support the group’s vehicle charging networks, green hydrogen facilities, and biofuel operations.
The BP share price traded up by 0.72% in trading yesterday. The stock has experienced a volatile year in 2023, recording a modest gain of just 3%.
About Lightsource BP
Lightsource BP is an independent leader in the development of solar PV projects. BP first invested in Lightsource in 2017 and increased its stake to 50% in 2019, adding its name to the venture. The JV has played a crucial role in BP’s strategy to diversify beyond oil and gas.
In the last six years, Lightsource BP has expanded its operations to 19 countries, established a 61GW development pipeline, and increased its workforce to over 1,200 personnel. In 2022, Lightsource BP disclosed an underlying EBITDA of £287 million. BP has stated its commitment to target double-digit equity returns from the acquired business.
Is BP a Good Stock to Buy Now?
According to TipRanks’ analyst consensus, BP stock has been assigned a Moderate Buy rating. The stock has nine Buy, three Hold, and one Sell recommendations from analysts. The share price forecast is 646.7p, which is almost 36% higher than the current price level.
