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PNE Wind Surges After Selling Projects to Dong: Frankfurt Mover

Aug. 14 (Bloomberg) -- PNE Wind AG jumped the most in more than three years in Frankfurt trading after selling three German wind-power projects to Dong Energy A/S for 157 million euros ($194 million).

PNE Wind rose 18 percent to close at 1.60 euros, the biggest one-day advance since November 2008. The gain trims its decline this year to 14 percent.

Dong paid 57 million euros upfront for the Gode Wind I, II and III offshore wind ventures and will make additional payments of as much as 100 million euros through 2015, PNE said today in a statement. The sale is the biggest transaction in its history, according to the Cuxhaven, Germany-based company.

The deal marks a change in fortunes for PNE, which failed to sell Gode Wind II late last year to Brancor Capital Partners as the Danish investor couldn’t meet contractual obligations. Acquisitions in the renewable-energy industry have fallen as credit-markets tighten, and Germany’s offshore wind developers have also suffered delays in connecting projects to the grid.

“Markets got a bit jittery as to whether they were going to be able to sell these parks,” Karsten von Blumenthal, an analyst at First Berlin Equity Research GmbH, said by phone.

The Gode Wind ventures, not yet built, will have a combined capacity of as much as 900 megawatts. Their North Sea location is about 30 kilometers (19 miles) northwest of the island of Norderney, according to Fredericia, Denmark-based Dong.

Transaction Value

Today’s deal amounts to about 245,000 euros a megawatt for permitted projects I and II, according to Bloomberg New Energy Finance. That’s less than the 317,000 euros a megawatt Brancor had offered for Gode Wind II last year, according to the London-based researcher.

The I and II projects have been assured grid connection from network operator TenneT TSO GmbH, as well as construction and operation licenses, according to Dong.

“We are very confident that our fully confirmed grid connection by TenneT will be there in time,” Martin Billhardt, PNE Wind’s chief executive officer, said today by phone.

Completion of the Gode Wind III sale is dependent on it getting all relevant permits by the end of January 2014, according to Dong. No investment decisions have yet been made for the three wind ventures, the company said.

PNE plans to sell more offshore wind projects, which it develops to the ready-to-build stage, Billhardt said.

To contact the reporter on this story: Sally Bakewell in London at Sbakewell1@bloomberg.net

To contact the editor responsible for this story: Reed Landberg at landberg@bloomberg.net

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