ERG acquires six wind farms in Germany

ERG, through its subsidiary ERG Power Generation S.p.A., has acquired from DIF RE Erneuerbare Energien 1 GmbH and DIF RE Erneuerbare Energien 3 GmbH, a 100% equity interest in six wind farms in Germany.

The wind farms, with an installed capacity of 48.4 MW, have an expected average output of around 84 GWh per year, corresponding to about 66,000 t of avoided CO2 emissions; the farms came on stream during 2007 and have an average incentive expiry date of 2027.

The price paid in terms of equity value amounts to €14.4 million (US$15.2 million), corresponding to an enterprise value of approximately €40 million (US$42.4 million), with average annual EBITDA forecast at around €5 million (US$5.3 million).

The closing is expected to take place during the second quarter of 2017, subject to obtainment of authorisation from the antitrust authority in Germany.

This transaction, in keeping with its overseas growth and diversification strategy, will allow ERG to consolidate its position in the German onshore wind power market, with an installed power of 216 MW. The geographical position of the wind farms, which are located in the Upper Saxony and Rheinland regions near to the ERG Group's other wind farms and its German operational headquarters, will make it possible to further streamline asset management activities, with potential added advantages also as regards the services performed for third parties.