Paris, France, Feb. 23, 2007 — Theolia announced an agreement with GE Energy Financial Services, the energy investing unit of GE, which they hope will significantly increase Theolia’s wind generation portfolio in Europe, bring additional capital to fund growth, and include an alliance anticipated to bring access to additional wind project development opportunities and structured capital expertise.
In an assets-for-equity swap, Theolia will acquire GE Energy Financial Services’ European wind farms, which have a total power generation capacity of 165 megawatts. In return for the contribution of its wind farms to Theolia, GE Energy Financial Services will receive 5,250,000 new shares of Theolia.
In addition, GE Energy Financial Services will support Theolia’s growth strategy by way of a capital contribution of over $26 million in return for 1,212,000 new shares and, as part of the agreement, will also be granted warrants to acquire 3,000,000 additional Theolia shares. As a result, GE Energy Financial Services will have the opportunity to increase its ownership in Theolia up to 22 percent of the company’s share capital on a fully diluted basis.
GE Energy Financial Services’ German wind parks, located at Alsleben, Krusemark, Grossvargula and Zabelsdorf, have a total installed capacity of 165 MW. They are composed of 66 REpower 1.5 MW turbines and of 44 GE 1.5 MW turbines.
In wind farm development, GE Energy Financial Services will work with Theolia on a preferential basis in the European Union to bring additional growth opportunities to Theolia. Theolia will also have access to project finance and GE’s energy products and services.
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