Theolia announced today an agreement with GE Energy Financial
Services, the energy investing unit of GE (NYSE:GE), which will
significantly increase Theolia's wind generation portfolio in Europe,
bring additional capital to fund growth, and include an alliance
anticipated to bring access to additional wind project development
opportunities and structured capital expertise.
In an assets-for-equity swap, Theolia will acquire GE Energy
Financial Services' European wind farms, which have a total power
generation capacity of 165 megawatts. In return for the contribution
of its wind farms to Theolia, GE Energy Financial Services will
receive 5,250,000 new shares of Theolia. Through this transaction,
Theolia materially strengthens its operating position in the German
market and gives Natenco, Theolia's subsidiary in Germany, additional
growth potential.
In addition, GE Energy Financial Services will support
Theolia's ambitious growth strategy by way of a capital contribution
of EUR 20 million in return for 1,212,000 new shares and, as part of
the agreement, will also be granted warrants to acquire 3,000,000
additional Theolia shares. As a result, GE Energy Financial Services
will have the opportunity to increase its ownership in Theolia up to
22 percent of the company's share capital on a fully diluted basis.
GE Energy Financial Services' German wind farms
GE Energy Financial Services' German wind parks, located at
Alsleben, Krusemark, Grossvargula and Zabelsdorf, have a total
installed capacity of 165 MW. They are composed of 66 REpower 1.5 MW
turbines and of 44 GE 1.5 MW turbines. This combined portfolio
produces enough power to provide for the needs of 70,000 homes and
reduces greenhouse gas emissions by 350,000 tons a year, compared to
fossil fuel power generation.
A value-creating combination
Theolia and GE Energy Financial Services will work together on a
number of fronts to bring additional value to both parties. In wind
farm development, GE Energy Financial Services will work with Theolia
on a preferential basis in the European Union to bring additional
growth opportunities to Theolia. Theolia will also 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.
GE Energy Financial Services will be represented on the Board of
Theolia.
The alliance with Theolia benefits GE Energy Financial Services by
providing investment exposure to existing and future development
projects with the potential for significant financial benefits, as
well as access to an experienced management team specialized in the
growing European renewable energy market.
Jean-Marie SANTANDER, President and CEO of Theolia declared: "I am
very happy about this new alliance. Our company, created in Aix en
Provence, started by developing energy projects in France. We then
acquired Ventura, the first significant step in the expansion of the
company. This was followed by our transfer to Eurolist and the
acquisition of Natenco in Germany, which transformed Theolia into a
leading European wind farm operator. This new alliance with GE now
brings an added dimension to our company. I am very pleased with this
new transaction and am convinced that it will enhance the
value-creating potential of Theolia for the benefit of all its
shareholders."
Alex Urquhart, President and CEO of GE Energy Financial Services,
said: "This transaction further extends our commitment to the
renewable energy sector in Europe. Theolia is well positioned to
capitalize on opportunities in the rapidly growing European renewable
energy sector and our collaboration with Theolia is a strong fit with
GE Energy Financial Services' growth strategy for Europe. We are
delighted to forge a close working relationship with Theolia, which we
believe will be mutually beneficial."
Theolia was advised by Societe Generale on this transaction. GE
Energy Financial Services was advised by Rothschild.
This acquisition is subject to a number of conditions precedent,
including relevant corporate and regulatory approvals. A "document E"
will be filed with the French stock exchange authority in connection
with this transaction.
Theolia will file a prospectus in relation to the recent PACEO
share issues and the acquisition of Natenco.
About Theolia
Theolia is a leading independent developer of wind farms in France
with a growing presence in renewable energy production across Europe.
Through the acquisition of GE Energy Financial Services' wind farms in
Germany, Theolia significantly increases its installed capacity from
78MW to 243MW. Theolia's activities cover the development,
construction and management of wind farms. The company is present in
France, Germany, Spain, Greece, Eastern Europe, India and Brazil.
Theolia is listed on Euronext Paris (Eurolist B) under the code TEO.
For more information, visit: www.theolia.com
About GE Energy Financial Services
GE Energy Financial Services' 300 experts invest globally with a
long-term view, across the capital spectrum and the energy and water
industries, to help their customers and GE grow. With US$13 billion in
assets, GE Energy Financial Services, based in Stamford, Connecticut,
and with European offices in London, Paris and Frankfurt, invests more
than US$5 billion annually in two of the world's most
capital-intensive industries, energy and water. In renewable energy,
GE Energy Financial Services has developed a strong record investing
in wind, solar, biomass, hydro and geothermal power, and is growing
its portfolio of more than US$1.75 billion in renewable energy assets.
For more information: www.geenergyfinancialservices.com.
About GE
GE (NYSE: GE) is Imagination at Work -- a diversified technology,
media and financial services company focused on solving some of the
world's toughest problems. With products and services ranging from
aircraft engines, power generation, water processing and security
technology to medical imaging, business and consumer financing, media
content and advanced materials, GE serves customers in more than 100
countries and employs more than 300,000 people worldwide. For more
information, visit www.ge.com.
