GE invests in Theolia wind power

French wind farm company Theolia has signed an agreement with GE Energy Financial Services which will increase Theolia’s wind generation portfolio in Europe and fund growth. It will include an alliance which the firms anticipate will give access to additional wind project development opportunities.

In an assets-for-equity swap, Theolia will acquire GE Energy Financial Services’ European wind farms, which have a total power generation capacity of 165MW. In return, GE Energy Financial Services will receive 5,250,000 new Theolia shares. Through this transaction, Theolia strengthens its operating position in the German market and gives Natenco, Theolia’s subsidiary in Germany, additional growth potential.

GE Energy Financial Services will support Theolia’s growth strategy by way of a capital contribution of €20m 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 per cent of the company’s share capital.