ERG acquires two wind farm with 16 MW capacity

ERG, through its subsidiary ERG Eolienne France SAS, has signed an agreement with Vent d'Est SAS, a company located in the Grand Est region of France for the acquisition of a 75% equity interest in two companies owners of two wind farms with an overall capacity of 16.25 MW

The projects are namely, Parc Eolienne de la Voie Sacrée SAS, 12 MW, which came on stream in 2007 and Parc Eolienne d'Epense SAS, 4.25 MW, which came on stream in 2005. The remaining 25% is held by Renvico France SAS.

The value of the acquisition, based on 100%, corresponds to an enterprise value of €12.9 million. The closing, subject inter alia to waiver by the minority shareholder of pre-emption rights, is scheduled to take place by the end of the year.

The transaction also provides for a co-development agreement to be entered into with Vent d'Est SAS regarding an early-stage pipeline of projects totalling around 300 MW again located in France, in areas characterised by very strong winds. The agreement will then pave the way for the launch of greenfield development activities also in France, under the leadership of ERG insofar as concerns the technical definition of the projects and cost management.