GE Energy Financial Services, a division of GE, and Theolia announced today the completion of a previously announced strategic relationship (see GE places big bet on French wind co. Theolia.)
The alliance is to significantly increase Theolia’s wind generation portfolio in Europe, bring it additional capital to fund growth and give it access to additional wind project development opportunities.
All necessary corporate and regulatory approvals have now been obtained, including those of Theolia’s shareholders and the French financial regulator.
In wind farm development, GE Energy Financial Services will work with Theolia on a preferential basis in the European Union to seek to bring additional growth opportunities for Theolia.
Theolia is expected to benefit from GE Energy Financial Services’ energy industry and financial structuring expertise, as well as access to project finance and GE’s energy products and services. Theolia will provide GE Energy Financial Services with investment opportunities in existing and future development projects, as well as access to an experienced management team specialized in the growing European wind energy market.
In an assets-for-equity exchange, Theolia acquired GE Energy Financial Services’ European wind farms, which have a total installed capacity of 165 megawatts, strengthening its operating position in Germany and giving its German subsidiary additional growth potential.
In return, GE Energy Financial Services received 5,250,000 new shares of Theolia. As part of the transaction, GE Energy Financial Services has also made a capital contribution of €20 million to support Theolia’s growth strategy in return for more 1,212,000 shares and warrants.
GE now has a total 17.03% stake in Theolia.
Theolia is a leading independent developer of wind farms in France with a growing presence in renewable energy production across Europe. The company has operations in France, Germany, Spain, Greece, Eastern Europe, India and Brazil.
3 July 2007
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