ERG acquires three wind farms from LongWing Energy
ERG, through its subsidiary ERG Eolienne France, has acquired from the Luxembourg company LongWing Energy France SA a 100% equity stake in five companies incorporated under French law, owners of three wind farms located in the French regions of Hauts de France, Centre - Vallée de la Loire and Nouvelle Aquitaine.
The wind farms, which have an overall installed capacity of 38 MW, came on stream between 2010 and 2012 and have a total annual output, based on historical average, of around 70 GWh, corresponding to over 1,840 equivalent hours and equal to approximately 37 kt of avoided CO2 emissions per year. For a period of 15 years, starting from the commercial operation date, the plants are entitled to benefit from an overall incentive tariff, which in 2019 averaged about EUR91 (US$98.98)/MWh.
The purchase price in terms of Enterprise Value amounts to EUR39.6 million (US$43.07 million).
The transaction has been approved by the French Ministry for the Economy and Finance.
ERG has been assisted in this transaction by Norton Rose (Legal advisor), PwC (Accounting & Tax advisor) and DNV-GL (technical advisor).
