Windpark Kesfeld Heckhuscheid and Windpark Kirf are to be sold to the German company Allianz Renewable Energy Management. Under the terms of the deal an initial payment of €37.8 million will be followed by a deferred consideration of up to €2 million.
Isle of Man-based Renewable Energy is an energy production company focussing on wind power in the UK and Europe. In 2009 the AIM-listed company declared a pre-tax profit of £11.2 million on a turnover of £8.94 million. The German wind power companies are currently held by Renewable Energy Holdings’ subsidiary REH Global.
In 2009 Windpark Kesfeld Heckhuscheid and Windpark Kirf made a collective pre-tax loss of £840,000 on turnover of £4.5 million.
Mike Proffitt, chief executive of REH, comments: ‘The proposed disposal of the German Wind assets demonstrates REH’s commitment and ability to focus on realising value from its assets with a view to creating value upside for shareholders from its future pipeline of wind development projects in Poland and Wales.’
Renewable Energy intends to use €30.4 million of the initial consideration to pay existing debts of the REH group and re-invest the remainder in the company’s Kobylany wind farm project in Poland.