PNE Wind Shares Rise After Buying Stake in German Developer WKNSally Bakewell
PNE Wind AG, the German wind-power company planning to issue 100 million euros ($131 million) in corporate bonds, rose the most in eight months in Frankfurt after buying 54 percent of developer WKN AG.
Shares in Cuxhaven-based PNE rose as much as 13.3 percent to 2.7 euros in Frankfurt trading, the most since Aug. 14. They traded at 2.6 euros at 5:04 p.m. local time.
WKN’s wind-farm business complements PNE’s, and the acquisition will create synergies through joint sales and purchasing, PNE said in a statement. WKN is worth about 93 million euros, PNE said, valuing the transaction at 50 million euros. PNE didn’t disclose a purchase price.
“I think that this purchase will have a positive impact on PNE wind because WKN complements PNE very well,” Christopher Rodler, a Hamburg-based analyst at MM Warburg Investment Research, said by phone. “This should maybe stabilize PNE’s returns over the next few years,” said Rodler, who has a buy rating on the shares.
PNE will fund the purchase with shares and proceeds from the corporate bond issue announced in March to fund purchases of wind farms on land and at sea in Germany and abroad, according to the statement.
WKN, with 177 employees at the end of last year, has developed more than 1,100 megawatts of wind including sales of project rights and is advancing more than 1,700 megawatts, according to the statement. Siemens AG holds a 29.3 percent stake in WKN through its Siemens Project Ventures GmbH unit, a company presentation showed.
PNE Wind has built about 820 megawatts and is developing 3,100 megawatts of onshore wind at home and abroad as well as additional offshore wind parks, according to the statement.