Renewable Energy Holdings sells wind sites

Renewable Energy Holdings is to sell two German wind energy companies for up to €39.8 million (£33.4 million).

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.

Also see: Interview with Mike Proffitt, CEO of Renewable Energy Holdings

Nick Britton

Lexus Ernser

Nick was the Managing Editor for when it was owned by Vitesse Media, before moving on to become Head of Investment Group and Editor at What Investment and thence to Head of Intermediary...