Intelligence Finance APP News, United Energy Group (00467) announced that on March 29, 2024, the company's indirectly wholly-owned subsidiary entered into a purchase agreement with seller DELCHO NIKOLAEV PEHLIVANOV to acquire 100% of the shares of Green Profit EOOD for a purchase price of 37.5 million euros (equivalent to approximately 319 million Hong Kong dollars). This acquisition indirectly grants the company the construction rights and easements of several plots of land in the Hascov region of Bulgaria, as well as permits for the development of the Simonovgrad Power Plant consisting of a 70 MW photovoltaic power facility, the Polyarnovo Power Plant consisting of a 180 MW photovoltaic power facility, and corresponding auxiliary infrastructure and connection facilities. The announcement stated that Bulgaria is making efforts to improve the legislative and regulatory environment for renewable energy investments to align with its ambitious plan to reduce emissions by 40% by 2025, which has shown some progress. While Bulgaria's renewable energy pipeline is not large, it is still growing, and the group believes that Bulgaria's renewable energy production will grow rapidly each year. The country's commitment to developing the renewable energy industry has been strengthened, with ESO and the government announcing in March 2021 that renewable energy generation is expected to double by 2024. The market has outlined intentions to develop an additional 1.6 GW of solar energy, 0.7 GW of wind energy, and 0.2 GW of biomass energy. Additionally, the new National Energy and Climate Plan (NECP) for 2021-2030 has been launched. The government has also amended the Energy Act to implement tax exemptions for new projects starting from January 2021 to incentivize investments. Solar energy is expected to have the strongest growth in Bulgaria, making it one of the best-performing countries in the EU in the coming years. Coupled with high electricity prices, well-developed infrastructure, and attractive financial terms, once operational, the project is expected to generate positive cash flow immediately. Following the completion of the transaction, the group plans to commence the construction of the project and aim to have Bulgaria's largest solar power facility operational by 2025. Given the growth potential of this project, the directors anticipate that entering into the purchase agreement will benefit the group, and the board believes that the terms of the agreement are fair and reasonable, and the proposed transaction is in the overall interest of the company and its shareholders