OPC Energy Ltd. (TASE: OPCE): CPV Group Announces Closing of Agreement for Full Ownership of Maryland Power Plant

OPC Energy Ltd. has successfully completed the acquisition of the remaining 25% interest in the CPV Maryland power plant, achieving full ownership through an asset swap transaction valued at an undisclosed amount. The transaction, finalized on May 13, 2026, involved CPV Group LP, in which OPC indirectly holds approximately 70%, acquiring the interest from its partner in exchange for a 10% stake in the CPV Three Rivers power plant, along with an immaterial cash consideration.

The CPV Maryland power plant is a significant asset within OPC's growing portfolio in the energy sector, particularly in the U.S. market. The plant plays a crucial role in CPV Group's strategy to consolidate its operations and enhance its financial reporting by fully integrating the facility into its financial statements. Following the completion of this transaction, CPV Maryland will be fully consolidated in both CPV Group's and OPC's financial statements, marking a strategic step towards streamlining operations and improving overall financial performance.

The acquisition aligns with OPC Energy's broader strategy of expanding its footprint in the energy transition sector, which includes a focus on efficient natural gas, solar, wind, and storage solutions. By consolidating its ownership of the CPV Maryland facility, OPC is positioned to leverage the plant's capabilities to meet the evolving energy needs of the market while enhancing its operational efficiency. The decision to divest the 10% interest in the CPV Three Rivers power plant reflects a strategic shift to prioritize assets that align more closely with OPC's long-term growth objectives.

In terms of financial implications, the transition to full consolidation of the CPV Maryland power plant is expected to be accounted for as an asset acquisition, with no anticipated remeasurement gain. However, the company will recognize a loss of approximately $28 million related to amounts in Other Comprehensive Income due to hedge accounting adjustments. Additionally, the disposition of the CPV Three Rivers interest is projected to yield an estimated after-tax capital gain of around $7 million, subject to customary adjustments.

This acquisition underscores the ongoing consolidation trend within the energy sector, as companies seek to optimize their portfolios in response to market dynamics and regulatory pressures. As OPC continues to expand its generation portfolio and customer base, the full ownership of the CPV Maryland power plant is likely to enhance its competitive positioning in the rapidly evolving energy landscape. The transaction also reflects a broader industry shift towards greater efficiency and sustainability, aligning with global energy transition goals.