Theolia Advances on Takeover of German Wind Operator Breeze Two
Theolia (TEO) SA, the French wind-power developer that averted bankruptcy in 2010, rose to the highest price in 4 1/2 months in Paris trading after agreeing to take control of Germany’s Breeze Two Energy GmbH & Co.
Theolia jumped 6.5 percent to 1.65 euros, the highest close since Sept. 3, after announcing the 35.5 million-euro ($47.8 million) transaction.
The takeover gives Theolia 337 megawatts of operating wind farms in Germany and France, more than doubling its installed capacity to 634 megawatts, the Aix-en-Provence-based company said today in a statement. That’s a boon to a stock that slumped about 75 percent in three years after a funding shortage almost tipped the developer into insolvency.
With electricity sales from Breeze Two’s projects, Theolia’s revenue will swell to 100 million euros a year from 67.5 million euros in 2011, according to the company.
Breeze Two, owned by Luxembourg-registered Monument Trust Ltd., financed its wind parks through a 470 million-euro bond offering in 2006. Under today’s deal, Theolia will buy a portion of the notes for 35.5 million euros using a 34 million-euro loan. The loan, maturing in 2026, is non-recourse, under which the lenders recoup payments from the venture’s profits.
Breeze Two’s estimated enterprise value of 309 million euros is “reflected in this transaction,” Theolia said, without giving further financial details. The French developer and officials at Breeze Two in Darmstadt, Germany, couldn’t immediately be reached for comment.
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